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A partial trial balance of Julie Hartsack Corporation is as follows on December

ID: 2470173 • Letter: A

Question

A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2015.

Dr.

Cr.


(a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2015? (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.)

No.

Account Titles and Explanation

Debit

Credit


(b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2015? (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.)

No.

Account Titles and Explanation

Debit

Credit


(c) 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 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

Dr.

Cr.

Supplies $2,575 Salaries and wages payable $1,475 Interest Receivable 4,858 Prepaid Insurance 92,720 Unearned Rent 0 Interest Payable 15,550

Explanation / Answer

(a) Assuming that the books have not been closed No. Account Titles and Explanation Debit Credit 1 Supplies Expense 1570 Supplies(2575-1005) 1570 2 Wages expense 4632 Salaries and wages payable 4632 3 Interest Receivable 4289 Accrued Interest 4289 4 Insurance expense 28270 Prepaid Insurance(92720_64450) 28270 5 Rent Revenue 12825 Unearned rent 25650/2 12825 6 Depreciation- Equipment 48888 Accumulated dep. 48888 7 Retained Earnings 7045 Accumulated Dep.Eqp. 7045 (a) Assuming that the books have been closed No. Account Titles and Explanation Debit Credit 1 Retained Earnings 1570 Supplies(2575-1005) 1570 2 Retained Earnings 4632 Salaries and wages payable 4632 3 Interest Receivable 4289 Accrued Interest 4289 4 Retained Earnings 28270 Prepaid Insurance(92720_64450) 28270 5 Retained Earnings 12825 Unearned rent 25650/2 12825 6 Retained Earnings 48888 Accumulated dep. 48888 7 Retained Earnings 7045 Accumulated Dep.Eqp. 7045 c. Income tax Payable 22373.2 Retained Earnings 22373.2 (@ 40%*(48888+7045)

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