Question
A partial trial balance of Lindy Corporation at December 31, 2020, follows: Dr. Cr. Supplies $7,200 Salaries and wages payable $6,000 Interest receivable 2,680 Prepaid
A partial trial balance of Lindy Corporation at December 31, 2020, follows:
Dr. | Cr. | |||
Supplies | $7,200 | |||
Salaries and wages payable | $6,000 | |||
Interest receivable | 2,680 | |||
Prepaid insurance | 111,000 | |||
Unearned rent revenue | -0- | |||
Interest payable | 16,900 |
Additional adjusting data:
1. | A physical count of supplies on hand on December 31, 2020, totalled $3,700. Through an oversight, the Salaries and Wages Payable account was not changed during 2020. Accrued salaries and wages on December 31, 2020, amounted to $8,400. | |
2. | The Interest Receivable account was also left unchanged during 2020. Accrued interest on investments amounted to $2,000 on December 31, 2020. | |
3. | The unexpired portions of the insurance policies totalled $44,200 as at December 31, 2020. | |
4. | A cheque for $75,500 was received on January 1, 2020, for the rent of a building for both 2020 and 2021. The entire amount was credited to Rent Revenue. | |
5. | Depreciation on equipment for the year was recorded in error as $4,930 rather than the correct figure of $49,300. | |
6. | A further review of prior years depreciation calculations revealed that depreciation on equipment of $19,400 had not been recorded. It was decided that this oversight should be corrected by adjusting prior years income. |
Assume that Lindy applies IFRS.
Assuming that the books have not been closed, what adjusting entries are necessary at December 31, 2020? Ignore income tax considerations. (Credit account titles are automatically indented when the 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. | |||
(To record supplies used) | |||
(To accrue salaries and wage expense) | |||
2. | |||
3. | |||
4. | |||
5. | |||
6. | |||
Assuming that the books have been closed, what adjusting entries are necessary at December 31, 2020? Ignore income tax considerations. (Credit account titles are automatically indented when the 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.)
Date | Account Titles and Explanation | Debit | Credit |
1. | |||
(To record supplies used.) | |||
(To accrue salaries and wage expense.) | |||
2. | |||
3. | |||
4. | |||
5. | |||
6. | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started