Question

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.)

A partial trial balance of Ayayai Corporation is as follows on December 31, 2018. Dr. Cr. $2,600 $1,300 5,000 Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable 89,600 0 14,900 Additional adjusting data: 1. 2. 3. 4. A physical count of supplies on hand on December 31, 2018, totaled $1,000. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,700. The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $4,200 on December 31, 2018. The unexpired portions of the insurance policies totaled $70,800 as of December 31, 2018. $25,800 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. Depreciation on equipment for the year was erroneously recorded as $4,500 rather than the correct figure of $45,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $6,400 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. 5. 6. 7.

Answer 1

Sl.No	Account titles	Debit	Credit
1	Supplies expnse	1600
	Supplies		1600
	(To record supplies expense)
2	Salary and wages	4700
	Salaries & wagesPayable		4700
	(To record accrues salry &wage)
3	Interest receivable	4200
	Interest received		4200
	(To record interest receivable)
4	Insurnace	18800
	Prepaid Insurance		18800
	(To record expired portion of insurance)
5	Rent revenue	12900
	Unearned rent		12900
	(To record unearned rent for the year 2019)
	(to record income tax expense)
6	Depreciation	40500
	Accumlated depreciation		40500
	(To record correct depreciation 45000-4500
7	Prior Period Item	6400
	Equipment		6400
	(To record unaccounted depreciation as prior perioditem)