Exercise 22-19 A partial trial balance of Bridgeport Corporation is as follows o

Question

Exercise 22-19
A partial trial balance of Bridgeport Corporation is as follows on December 31, 2018.
Dr. Cr.
Supplies $2,700
Salaries and wages payable $1,400
Interest Receivable 5,200
Prepaid Insurance 85,600
Unearned Rent 0
Interest Payable 13,500

Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2018, totaled $1,300.
2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,000.
3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,300 on December 31, 2018.
4. The unexpired portions of the insurance policies totaled $62,900 as of December 31, 2018.
5. $29,600 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 $4,700 rather than the correct figure of $47,000.
7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.





Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2018? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No. Account Titles and Explanation Debit Credit
1.

2.

3.

4.

5.

6.

7.




SHOW LIST OF ACCOUNTS




Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2018? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No. Account Titles and Explanation Debit Credit
1.

2.

3.

4.

5.

6.

7.




SHOW LIST OF ACCOUNTS




Pass the necessary adjusting entries for the following taking into account income tax effects (40% tax rate) and assuming that the books have been closed. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. Depreciation on equipment for the year was erroneously recorded as $4,700 rather than the correct figure of $47,000.
2. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

No. Account Titles and Explanation Debit Credit
1.


2.

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Exercise 22-19 partial trial balance of Bridgeport Corporation is as follows on December 31, 2018, $2,700 $1,400 Salaries and wages payable Interest Receivable Prepaid Insurance 5,200 85,600 earned Rent Interest Payable Additional adjusting data · A physical count of supplies on hand on December 31, 2018, totaled $1,200 Through oversight, the Salaries and Wages Payable account was not changed during 2018. Acorued salaries and wages on December 31, 2018, amounted to $4,000. 2. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on 4. S. investments amounts to $4,300 on December 31, 201. The unexpired portions of the insurance policies totaled $62,900 as of December 31, 2018. $29,600 was received on January 1, 2018, for the rent af a building for bath 2018 and 2019. The entire amount was credited to rent revenue 6. Depreciatian an equipment for the year was erroneously recorded as $4,700 rather than the A further review of depreciation caloulations of prior years revealed that equipment depreciation of $7,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. 7. Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2018? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Assuning that the books have been closed, what are the adjusting entries necessary at Decenber 31, 2019 (Ignore income tax considerations.) (Credit account titles are

Explanation / Answer

When books are not closed

when books are closed

Income tax effect of 40%

date

explanation

debit

credit

date

explanation

debit

credit

date

explanation

debit

credit

31-Dec

supplies expense

1400

31-Dec

retained earning

1400

31-Dec

Retained earning

25380

supplies

1400

supplies

1400

deferred tax asset

16920

accumulated depreciation

42300

31-Dec

salaries and wages expenses

2600

31-Dec

retained earning

2600

accrued salaries and wages

2600

accrued salaries and wages

2600

31-Dec

retained earning

4440

deferred tax asset

2960

31-Dec

interest revenue

900

31-Dec

retained earning

900

accumulated depreciation

7400

interest receivable

900

interest receivable

900

31-Dec

insurance expense

22700

31-Dec

retained earning

22700

unexpired insurance

22700

unexpired insurance

22700

31-Dec

rent revenue

14800

31-Dec

retained earning

14800

unearned rent revenue

14800

unearned rent revenue

14800

31-Dec

depreciation expense

42300

31-Dec

retained earning

42300

accumulated depreciation-equipment

42300

accumulated depreciation-equipment

42300

31-Dec

retained earning

7400

31-Dec

retained earning

7400

accumulated depreciation-equipment

7400

accumulated depreciation-equipment

7400

When books are not closed

when books are closed

Income tax effect of 40%

date

explanation

debit

credit

date

explanation

debit

credit

date

explanation

debit

credit

31-Dec

supplies expense

1400

31-Dec

retained earning

1400

31-Dec

Retained earning

25380

supplies

1400

supplies

1400

deferred tax asset

16920

accumulated depreciation

42300

31-Dec

salaries and wages expenses

2600

31-Dec

retained earning

2600

accrued salaries and wages

2600

accrued salaries and wages

2600

31-Dec

retained earning

4440

deferred tax asset

2960

31-Dec

interest revenue

900

31-Dec

retained earning

900

accumulated depreciation

7400

interest receivable

900

interest receivable

900

31-Dec

insurance expense

22700

31-Dec

retained earning

22700

unexpired insurance

22700

unexpired insurance

22700

31-Dec

rent revenue

14800

31-Dec

retained earning

14800

unearned rent revenue

14800

unearned rent revenue

14800

31-Dec

depreciation expense

42300

31-Dec

retained earning

42300

accumulated depreciation-equipment

42300

accumulated depreciation-equipment

42300

31-Dec

retained earning

7400

31-Dec

retained earning

7400

accumulated depreciation-equipment

7400

accumulated depreciation-equipment

7400

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