A partial trial balance of Buffalo Corporation is as follows on December 31, 201

Question

A partial trial balance of Buffalo Corporation is as follows on December 31, 2018 Dr. Cr. Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable $2,700 $1,400 5,200 82,500 0 15,800 Additional adjusting data 1. A physical count of supplies on hand on December 31, 2018, totaled $1,200 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,400 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,100 on December 31, 2018 The unexpired portions of the insurance policies totaled $67,600 as of December 31, 2018 $25,900 was received on January 1, 2018, for the rent of a building for both 2018 and 2019. The entire amount was credited to rent 4. 5. revenue Depreciation on equipment for the year was erroneously recorded as $4,900 rather than the correct figure of $49,000 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 6. 7.

Explanation / Answer

1 Supplies Expense 1500 =2700-1200           Supplies 1500 2 Salaries and wages expense 3000 =4400-1400          Salaries and wages payable 3000 3 Interest revenue 1100 =5200-4100        Interest receivable 1100 4 Insurance Expense 14900 =82500-67600         Prepaid Insurance 14900 5 Rent revenue 12950 =25900/2         Unearned Rent revenue 12950 6 Depreciation Expense 44100 =49000-4900        Accumulated Depreciation – Equipment 44100 7 Retained earnings 7400        Accumulated Depreciation – Equipment 7400

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