Exercise 22-19 A partial trial balance of Blue Corporation is as follows on December 31, 2021. Dr. Cr. $2,400 $1,400 Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable 5,400 83,000 0 15,500 Additional adjusting data: 1. 2. 3. 4. A physical count of supplies on hand on December 31, 2021, totaled $1,100. Through oversight, the Salaries and Wages Payable account was not changed during 2021. Accrued salaries and wages on December 31, 2021, amounted to $4,300. The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,800 on December 31, 2021. The unexpired portions of the insurance policies totaled $60,200 as of December 31, 2021. $26,000 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. Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. 5. 6. 7. Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Supplies Expense 1,400 Supplies 1,400 2. Salaries and Wages Expen: 2,900 Salaries and Wages Pay 2,900 3. Interest Revenue 600 Interest Receivable 600 4. Insurance Expense 22,800 Prepaid Insurance 22,800 5. Rent Revenue 13,000 Unearned Rent Revenue 13,000 6. Depreciation Expense 41,400 Accumulated Depreciati 41,400 7. Retained Earnings 6,900 Accumulated Denreciati 6 ann Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Retained Earnings 1,400 Supplies 1,400 2. Retained Earnings 2,900 Salaries and Wages Pay 2,900 3. Retained Earnings 600 Interest Receivable 600 4. Retained Earnings 22,800 Prepaid Insurance 22,800 5. Retained Earnings 13,000 Unearned Rent Revenue 13,000 6. Retained Earnings 41,400 Accumulated Depreciati 41,400 7. Retained Earnings 6,900 Accumulated Denreciati 6 ann 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. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. 2. Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. No. Account Titles and Explanation Debit Credit 1. Retained Earnings Income Tax Receivable Accumulated Depreciation. 2. Retained Earnings Income Tax Receivable Accumulated Depreciation- Exercise 22-19 A partial trial balance of Blue Corporation is as follows on December 31, 2021. Dr. Cr. $2,400 $1,400 Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable 5,400 83,000 0 15,500 Additional adjusting data: 1. 2. 3. 4. A physical count of supplies on hand on December 31, 2021, totaled $1,100. Through oversight, the Salaries and Wages Payable account was not changed during 2021. Accrued salaries and wages on December 31, 2021, amounted to $4,300. The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,800 on December 31, 2021. The unexpired portions of the insurance policies totaled $60,200 as of December 31, 2021. $26,000 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. Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. 5. 6. 7. Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Supplies Expense 1,400 Supplies 1,400 2. Salaries and Wages Expen: 2,900 Salaries and Wages Pay 2,900 3. Interest Revenue 600 Interest Receivable 600 4. Insurance Expense 22,800 Prepaid Insurance 22,800 5. Rent Revenue 13,000 Unearned Rent Revenue 13,000 6. Depreciation Expense 41,400 Accumulated Depreciati 41,400 7. Retained Earnings 6,900 Accumulated Denreciati 6 ann Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2021? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Retained Earnings 1,400 Supplies 1,400 2. Retained Earnings 2,900 Salaries and Wages Pay 2,900 3. Retained Earnings 600 Interest Receivable 600 4. Retained Earnings 22,800 Prepaid Insurance 22,800 5. Retained Earnings 13,000 Unearned Rent Revenue 13,000 6. Retained Earnings 41,400 Accumulated Depreciati 41,400 7. Retained Earnings 6,900 Accumulated Denreciati 6 ann 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. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. 2. Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. No. Account Titles and Explanation Debit Credit 1. Retained Earnings Income Tax Receivable Accumulated Depreciation. 2. Retained Earnings Income Tax Receivable Accumulated Depreciation