Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A partial trial balance of Indigo Corporation is as follows on December 31, 2021. Dr. Cr. Supplies $2,600 Salaries and wages payable $1,600 Interest Receivable
A partial trial balance of Indigo Corporation is as follows on December 31, 2021.
Dr. | Cr. | |||
---|---|---|---|---|
Supplies | $2,600 | |||
Salaries and wages payable | $1,600 | |||
Interest Receivable | 5,100 | |||
Prepaid Insurance | 90,400 | |||
Unearned Rent | 0 | |||
Interest Payable | 15,300 |
Additional adjusting data:
1. | A physical count of supplies on hand on December 31, 2021, totaled $1,000. | |
---|---|---|
2. | Through oversight, the Salaries and Wages Payable account was not changed during 2021. Accrued salaries and wages on December 31, 2021, amounted to $4,200. | |
3. | The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,800 on December 31, 2021. | |
4. | The unexpired portions of the insurance policies totaled $61,100 as of December 31, 2021. | |
5. | $26,400 was received on January 1, 2021, for the rent of a building for both 2021 and 2022. The entire amount was credited to rent revenue. | |
6. | Depreciation on equipment for the year was erroneously recorded as $5,500 rather than the correct figure of $55,000. | |
7. | A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,600 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started