E22-19 (Error Analysis; CorrectingEntries) A partial trialbalance of Julie Harts

ID: 2433780 • Letter: E

Question

E22-19 (Error Analysis; CorrectingEntries) A partial trialbalance of Julie Hartsack Corporation is as follows on December 31,2008.

Dr. Cr.

Supplies onhand $ 2,700

Accrued salaries andwages $ 1,500

Interest receivable oninvestments 5,100

Prepaidinsurance 90,000

Unearnedrent –0–

Accrued interestpayable 15,000

Additional adjusting data:

1. A physical count ofsupplies on hand on December 31, 2008, totaled$1,100.

2. Through oversight, theAccrued Salaries and Wages account was not changed during 2008.Accrued

salaries and wages on December 31, 2008, amountedto $4,400.

3. The InterestReceivable on Investments account was also left unchanged during2008. Accrued

interest on investments amounts to $4,350 onDecember 31, 2008.

4. The unexpired portionsof the insurance policies totaled $65,000 as of December 31,2008.

5. $28,000 was receivedon January 1, 2008 for the rent of a building for both 2008 and2009. The entire

amount was credited to rentalincome.

6. Depreciation for theyear was erroneously recorded as $5,000 rather than the correctfigure of

$50,000.

7. A further review ofdepreciation calculations of prior years revealed that depreciationof $7,200

was not recorded. It was decided that thisoversight should be corrected by a prior period

adjustment.

Instructions

(a) Assuming that thebooks have not been closed, what are the adjusting entriesnecessary at

December 31, 2008? (Ignore income taxconsiderations.)

(b) Assuming that thebooks have been closed, what are the adjusting entries necessary atDecember

31,2008? (Ignore income tax considerations.)

please please send me answer to this question.

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