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.

Pass the necessary adjusting entries for the following taking into account income tax effects (40% tax rate) and assuming that the books have been closed.

1. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000.
2. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,500 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.