A partial trial balance of Dickinson Ltd. is as follows on December 31, 2022.

Additional adjusting data:

1. A physical count of supplies on hand on December 31, 2022, totaled R1,100.

2. Through oversight, the Salaries and Wages Payable account was not changed during 2022. Accrued salaries and wages on December 31, 2022, amounted to R4,400.

3. The Interest Receivable account was also left unchanged during 2022. Accrued interest on investments amounts to R4,350 on December 31, 2022.

4. The unexpired portions of the insurance policies totaled R65,000 as of December 31, 2022.

5. R24,000 was received on January 1, 2022, for the rent of a building for both 2022 and 2023. The entire amount was credited to rental income.

6. Depreciation for the year on equipment was erroneously recorded as R5,000 rather than the correct figure of R50,000.

7. A further review of depreciation calculations of prior years revealed that depreciation of R7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Instructions

a. Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2022? (Ignore income tax considerations.)

b. Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2022? (Ignore income tax considerations.)

Transcribed Image Text:

Dr. Cr. Supplies R 2,500 Salaries and wages payable R 1,500 Interest receivable 5,100 Prepaid insurance 90,000 Unearned rent -0- Accrued interest payable 15,000