Question
A partial trial balance of Dickinson Ltd. is as follows on December 31, 2020. Dr. Cr. Supplies $ 2,500 Salaries and wages payable $ 1,500
A partial trial balance of Dickinson Ltd. is as follows on December 31, 2020.
Dr. | Cr. | |
Supplies | $ 2,500 | |
Salaries and wages payable | $ 1,500 | |
Interest receivable | 5,100 | |
Prepaid insurance | 40,000 | |
Unearned rent | 0 | |
Accrued interest payable | 15,000 |
Additional information:
1. Through oversight, the Salaries and Wages Payable account was not record accordingly during 2020. Actual amount of accrued salaries and wages on December 31, 2020, amounted to $4,400.
2. The Interest Receivable account was also left unchanged during 2020. Accrued interest on investments amounts to $4,350 on December 31, 2020.
3. Insurance for one-year period was unintentionally charged to 2020 insurance expense. The company purchased the insurance on April 1, 2020.
4. $36,000 was received on January 1, 2020, for the rent of a building for both 2020 and 2021. The entire amount was credited to rental income.
5. Depreciation for the year on equipment was erroneously recorded as $36,000 rather than the correct figure of $3,600.
6. A further review of depreciation calculations of prior years (i.e., 2018 and 2019) revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
REQUIRED:
Assuming that the books have not been closed, what are the correcting entries necessary at December 31, 2020? (Ignore income tax considerations.)
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