Exercise 22-19 A partial trial balance of Wildhorse Corporation is as follows on December 31, 2018 Dr Cr Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable $2,700 $1,400 5,200 82,500 0 15,800 Additional adjusting data 1. A physical count of supplies on hand on December 31, 2018, totaled $1,200 Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,400 2. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,100 on December 31, 2018 4. The unexpired portions of the insurance policies totaled $67,600 as of December 31, 2018 5. $25,900 was received on January 1, 2018, for the rent of a building for both 2018 and 2019. The entire amount was credited to rent revenue 6. Depreciation on equipment for the year was erroneously recorded as $4,900 rather than the correct figure of $49,000 7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2018? (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 0 for the amounts.) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2018 (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. 2. 3. 4. 5. 6. 7. SHOW LIST OF ACCOUNTS Pass he necessary adjusting entries or the following taking into account income tax effects 40% tax rate and assuming that the books have been dosed. (Round answers to decima places, eg. 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 0 for the amounts.) 1. Depreciation on equipment for the year was erroneously recorded as $4,900 rather than the correct figure of $49,000 2 Aarther rnie f depreciation aculations of prior yers reveasied thet euoment depreiation of s7400 sntrecordedt was decided that this oversght should be corrected by a prir perios adjustment. No. Account Titles and Explanation Debit Credit 1. 2
