Question

A partial trial balance of Kingbird Corporation is as follows on December 31, 2021.

		Dr.		Cr.
Supplies		$2,900
Salaries and wages payable				$1,600
Interest Receivable		5,200
Prepaid Insurance		97,100
Unearned Rent				0
Interest Payable				13,700

Additional adjusting data:

1.		A physical count of supplies on hand on December 31, 2021, totaled $1,200.
2.		Through oversight, the Salaries and Wages Payable account was not changed during 2021. Accrued salaries and wages on December 31, 2021, amounted to $4,600.
3.		The Interest Receivable account was also left unchanged during 2021. Accrued interest on investments amounts to $4,300 on December 31, 2021.
4.		The unexpired portions of the insurance policies totaled $64,300 as of December 31, 2021.
5.		$30,700 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.
6.		Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000.
7.		A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,300 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. 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.) 1. Depreciation on equipment for the year was erroneously recorded as $4,600 rather than the correct figure of $46,000. 2. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,300 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. Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount 2. Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Retained Earnings	$24,840		Balance
	Deferred Tax Assets	$16,560		($41,400 x 40%)
	Accumulated Depreciation		$41,400
2	Retained Earnings	$4,380		Balance
	Deferred Tax Assets	$2,920		($7,300 x 40%)
	Accumulated Depreciation		$7,300