Three Transactions Given Below Were Completed During 2014 by Story $\quad$

question 19

Essay

Three transactions given below were completed during 2014 by Story Company.
A. On June 1, 2014, Story Company paid $12,600 for one year's rent beginning on that date. The rent payment was recorded as follows:
B. On February 1, 2014, Story Company purchased office supplies during the year that cost $700 and placed the supplies in a storeroom for use as needed. The purchase was recorded as follows:
At December 31, 2014, a count showed unused office supplies of $200 in the storeroom. There was no beginning inventory of supplies on hand.
C. On December 31, 2014, Story Company owed employees $2,000 for wages earned during December. These wages had not been paid or recorded.
Required:
Prepare the adjusting entries as of December 31, 2014, assuming no adjusting entries have been made during the year.
Prepaid rent $\quad$ 12,600
Cash $\quad$ 12,600 Office supplies inventory $\quad$ 700
Cash $\quad$ 700

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Definitions:

Informal Economy

The part of an economy that is neither taxed nor monitored by any form of government, often characterized by cash transactions and unregulated employment.

Goods And Services

The products and activities offered by businesses to satisfy the needs and wants of consumers, where goods are tangible items and services are intangible experiences or tasks performed.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, pivotal in the development of the Industrial Revolution.

Industrial Revolution

A period of major industrialization that took place during the late 18th and early 19th centuries, marked by significant technological advancements and societal changes.