A partial trial balance of Sarasota Corporation is as follows on December 31, 2021.

		Dr.		Cr.
Supplies		$2,800
Salaries and wages payable				$1,400
Interest Receivable		5,100
Prepaid Insurance		89,200
Unearned Rent				0
Interest Payable				15,800

Additional adjusting data:

1.		A physical count of supplies on hand on December 31, 2021, totaled $1,200.
2.		Through oversight, the Salaries and Wages Payable account was not changed during 2021. Accrued salaries and wages on December 31, 2021, amounted to $4,800.
3.		The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,600 on December 31, 2021.
4.		The unexpired portions of the insurance policies totaled $61,200 as of December 31, 2021.
5.		$29,100 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 $5,100 rather than the correct figure of $51,000.
7.		A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,800 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

1 Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.)

2 Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.)

3 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 $5,100 rather than the correct figure of $51,000.2.A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,800 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.