Exercise 22-19 Dr. Cr. No. Account Titles and Explanation Debit Credit SHOW LIST
ID: 2528496 • Letter: E
Question
Exercise 22-19
Dr.
Cr.
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
Open Show Work
Exercise 22-19
A partial trial balance of Waterway Corporation is as follows on December 31, 2018.Dr.
Cr.
Supplies $2,500 Salaries and wages payable $1,500 Interest Receivable 5,500 Prepaid Insurance 89,600 Unearned Rent 0 Interest Payable 16,000Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2018, totaled $1,100. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,500. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,000 on December 31, 2018. 4. The unexpired portions of the insurance policies totaled $70,100 as of December 31, 2018. 5. $29,900 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 $5,200 rather than the correct figure of $52,000. 7. 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.
Explanation / Answer
1. Cost of Goods sold-----Dr 1,400
To supplies 1,400
2. Salary expenses--------Dr 3,000
To salary payable 3,000
3. Cash-----------------------Dr 1,500
To Int. receivable 1,500
4. Insurance expense----Dr 19,500
To prepaid insurance 19,500
5. Rent revenue-----------Dr 14,950
To unearned rent 14,950
6. Depreciation-----------Dr 46,800
To accumulated depreciation 46,800
7. Retained earnings----Dr 6,500
To accumulated depreciation 6,500
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