Exercise 22-19 Dr. Cr. No. Account Titles and Explanation Debit Credit SHOW LIST
ID: 2549500 • Letter: E
Question
Exercise 22-19
Dr.
Cr.
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
No.
Account Titles and Explanation
Debit
Credit
Exercise 22-19
A partial trial balance of Kingbird Corporation is as follows on December 31, 2018.Dr.
Cr.
Supplies $2,400 Salaries and wages payable $1,400 Interest Receivable 4,600 Prepaid Insurance 89,900 Unearned Rent 0 Interest Payable 16,000Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2018, totaled $1,000. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,200. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,100 on December 31, 2018. 4. The unexpired portions of the insurance policies totaled $63,700 as of December 31, 2018. 5. $30,000 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 $5,300 rather than the correct figure of $53,000. 7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,100 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Supplies Expense ($2,400 - $1,000) 1,400.00 Supplies 1,400.00 (To record the supplies expenses) 2 Salaries & Wages Expenses ($4,200 - $1,400) 2,800.00 Salaries & Wages Payable 2,800.00 (To record the Salaries & Wages expenses) 3 Interest Revenue ($4,600 - $4,100) 500.00 Interest Receivable 500.00 (To record the adjusting entry for interest revenue) 4 Insurance Expense ($89,900 - $63,700) 26,200.00 Prepaid Insurance 26,200.00 (To record the Insurance expenses) 5 Rent Revenue ($30,000 / 2) 15000 Unearned Revenue 15000 (To record the adjusting entry for rent revenue) 6 Depreciation Expense ($53,000 - $5,300) 47,700.00 Accumulated Depreciation - Equip. 47,700.00 (To record the Depreciation expenses) 7 Retained Earnings 7,100.00 Accumulated Depreciation - Equip. 7,100.00 (To record the Depreciation expenses-prior period) Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Retained Earnings 1,400.00 Supplies 1,400.00 (To record the supplies expenses) 2 Retained Earnings 2,800.00 Salaries & Wages Payable 2,800.00 (To record the Salaries & Wages expenses) 3 Retained Earnings 500.00 Interest Receivable 500.00 (To record the adjusting entry for interest revenue) 4 Retained Earnings 26,200.00 Prepaid Insurance 26,200.00 (To record the Insurance expenses) 5 Retained Earnings 15,000.00 Unearned Revenue 15,000.00 (To record the adjusting entry for rent revenue) 6 Retained Earnings 47,700.00 Accumulated Depreciation - Equip. 47,700.00 (To record the Depreciation expenses) 7 Retained Earnings 7,100.00 Accumulated Depreciation - Equip. 7,100.00 (To record the Depreciation expenses-prior period) Answer 3. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Retained Earnings 28,620.00 Income Tax Receivable ($47,700 X 40%) 19,080.00 Accumulated Depreciation - Equip. ($53,000 - $5,300) 47,700.00 (To record the prior period depreciation expense) 2 Retained Earnings 4,260.00 Income Tax Receivable ($7,100 X 40%) 2,840.00 Accumulated Depreciation - Equip. 7,100.00 (To record the prior period depreciation expense)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.