Dr. Cr. No. Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS No
ID: 2552377 • Letter: D
Question
Dr.
Cr.
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
No.
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
No.
Account Titles and Explanation
Debit
Credit
A partial trial balance of Swifty Corporation is as follows on December 31, 2018.Dr.
Cr.
Supplies $2,600 Salaries and wages payable $1,600 Interest Receivable 5,100 Prepaid Insurance 90,400 Unearned Rent 0 Interest Payable 15,300Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2018, totaled $1,000. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,200. 3. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,800 on December 31, 2018. 4. The unexpired portions of the insurance policies totaled $61,100 as of December 31, 2018. 5. $26,400 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 $5,500 rather than the correct figure of $55,000. 7. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,600 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Supplies Expense ($2,600 - $1,000) 1,600.00 Supplies 1,600.00 (To record the supplies expenses) 2 Salaries & Wages Expenses ($4,200 - $1,600) 2,600.00 Salaries & Wages Payable 2,600.00 (To record the Salaries & Wages expenses) 3 Interest Revenue ($5,100 - $4,800) 300.00 Interest Receivable 300.00 (To record the adjusting entry for interest revenue) 4 Insurance Expense ($90,400 - $61,100) 29,300.00 Prepaid Insurance 29,300.00 (To record the Insurance expenses) 5 Rent Revenue ($26,400 / 2) 13,200.00 Unearned Revenue 13,200.00 (To record the adjusting entry for rent revenue) 6 Depreciation Expense ($55,000 - $5,500) 49,500.00 Accumulated Depreciation - Equip. 49,500.00 (To record the Depreciation expenses) 7 Retained Earnings 6,600.00 Accumulated Depreciation - Equip. 6,600.00 (To record the Depreciation expenses-prior period) Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Retained Earnings 1,600.00 Supplies 1,600.00 (To record the supplies expenses) 2 Retained Earnings 2,600.00 Salaries & Wages Payable 2,600.00 (To record the Salaries & Wages expenses) 3 Retained Earnings 300.00 Interest Receivable 300.00 (To record the adjusting entry for interest revenue) 4 Retained Earnings 29,300.00 Prepaid Insurance 29,300.00 (To record the Insurance expenses) 5 Retained Earnings 13,200.00 Unearned Revenue 13,200.00 (To record the adjusting entry for rent revenue) 6 Retained Earnings 49,500.00 Accumulated Depreciation - Equip. 49,500.00 (To record the Depreciation expenses) 7 Retained Earnings 6,600.00 Accumulated Depreciation - Equip. 6,600.00 (To record the Depreciation expenses-prior period) Answer 3. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Retained Earnings 29,700.00 Income Tax Receivable ($49,500 X 40%) 19,800.00 Accumulated Depreciation - Equip. ($55,000 - $5,500) 49,500.00 (To record the prior period depreciation expense) 2 Retained Earnings 3,960.00 Income Tax Receivable ($6,600 X 40%) 2,640.00 Accumulated Depreciation - Equip. 6,600.00 (To record the prior period depreciation expense)
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