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Exercise 22-19 Dr. Cr. No. Account Titles and Explanation Debit Credit SHOW LIST

ID: 2528496 • Letter: E

Question

Exercise 22-19

Dr.

Cr.

No.

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

No.

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

No.

Account Titles and Explanation

Debit

Credit

Open Show Work

Exercise 22-19

A partial trial balance of Waterway Corporation is as follows on December 31, 2018.

Dr.

Cr.

Supplies $2,500 Salaries and wages payable $1,500 Interest Receivable 5,500 Prepaid Insurance 89,600 Unearned Rent 0 Interest Payable 16,000
Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2018, totaled $1,100. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,500. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,000 on December 31, 2018. 4. The unexpired portions of the insurance policies totaled $70,100 as of December 31, 2018. 5. $29,900 was received on January 1, 2018, for the rent of a building for both 2018 and 2019. The entire amount was credited to rent revenue. 6. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. 7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,500 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Explanation / Answer

1. Cost of Goods sold-----Dr 1,400

To supplies 1,400

2. Salary expenses--------Dr 3,000

To salary payable 3,000

3. Cash-----------------------Dr 1,500

To Int. receivable 1,500

4. Insurance expense----Dr 19,500

To prepaid insurance 19,500

5. Rent revenue-----------Dr 14,950

To unearned rent 14,950

6. Depreciation-----------Dr 46,800

To accumulated depreciation 46,800

7. Retained earnings----Dr 6,500

To accumulated depreciation 6,500