Three Transactions Are Given Below That Were Completed During 2011 $\quad$

question 103

Essay

Three transactions are given below that were completed during 2011 by Story Company.Prepare the adjusting entries as of December 31,2011,assuming no adjusting entries have been made during the year. Prepaid rent $\quad$$\quad$ 12,600
$\quad$ Cash $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 12,600 B.On February 1,2011,Story Company purchased office supplies during the year that cost $700 and placed the supplies in a storeroom for use as needed.The purchase was recorded as follows: Office supplies inventory $\quad$$\quad$$\quad$ 700
$\quad$ Cash $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 700 At December 31,2011,a count showed unused office supplies of $200 in the storeroom.There was no beginning inventory of supplies on hand.
C.On December 31,2011,Story Company owed employees $2,000 for wages earned during December.These wages had not been paid nor recorded.

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Definitions:

Private-label Item

A product that is manufactured by one company but sold under another company's brand, typically a retailer's brand.

Branded Item

A product or service that is marketed under a particular brand name, recognized for its quality, design, or performance.

Cardinal Rules

Fundamental principles that govern behavior or operations within an organization or system.

Marked Up

The process of increasing the price of a product or service from its original cost, often to ensure a profit margin.