Question
A partial trial balance of Novak Corporation is as follows on December 31, 2021. Dr. Cr. Supplies $2,500 Salaries and wages payable $1,500 Interest Receivable
A partial trial balance of Novak Corporation is as follows on December 31, 2021.
Dr. | Cr. | |
Supplies | $2,500 | |
Salaries and wages payable | $1,500 | |
Interest Receivable | 5,500 | |
Prepaid Insurance | 89,600 | |
Unearned Rent | 0 | |
Interest Payable | 16,000 |
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 $4,700.
3. The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,200 on December 31, 2021.
4. The unexpired portions of the insurance policies totaled $70,800 as of December 31, 2021.
5. $25,800 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 $4,500 rather than the correct figure of $45,000.
7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
Assuming that the books HAVE been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.)
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