A partial trial balance of Shamrock Corporation is as follows on December 31, 2026. Dr. Cr. Supplies $2,500 Salaries and wages payable $1,500 Interest receivable 5,400 Prepaid insurance 90,600 Unearned rent revenue -0- Interest payable 13,900 Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2026, totaled $1,000. 2. 3. 4. 5. 6. 7. Through oversight, the Salaries and Wages Payable account was not changed during 2026. Accrued salaries and wages on December 31, 2026, amounted to $4,000. The Interest Receivable account was also left unchanged during 2026. Accrued interest on investments amounts to $4,800 on December 31, 2026. The unexpired portions of the insurance policies totaled $59,200 as of December 31, 2026. $29,500 was received on January 1, 2026, for the rent of a building for both 2026 and 2027. The entire amount was credited to Rent Revenue. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. (a) (b) (c) Your answer is partially correct. Prepare 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 1. 2. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. No. Account Titles and Explanation 1. Depreciation Expense Accumulated Depreciation-Equipment Sales Tax Expense Debit Credit 46800 18720 2. Retained Earnings Accumulated Depreciation-Equipment 7900 Sales Taxes Payable 46800 18720 7900

A partial trial balance of Shamrock Corporation is as follows on December 31, 2026. Dr. Cr. Supplies $2,500 Salaries and wages payable $1,500 Interest receivable 5,400 Prepaid insurance 90,600 Unearned rent revenue -0- Interest payable 13,900 Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2026, totaled $1,000. 2. 3. 4. 5. 6. 7. Through oversight, the Salaries and Wages Payable account was not changed during 2026. Accrued salaries and wages on December 31, 2026, amounted to $4,000. The Interest Receivable account was also left unchanged during 2026. Accrued interest on investments amounts to $4,800 on December 31, 2026. The unexpired portions of the insurance policies totaled $59,200 as of December 31, 2026. $29,500 was received on January 1, 2026, for the rent of a building for both 2026 and 2027. The entire amount was credited to Rent Revenue. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. (a) (b) (c) Your answer is partially correct. Prepare 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 O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 1. 2. Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,900 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment. No. Account Titles and Explanation 1. Depreciation Expense Accumulated Depreciation-Equipment Sales Tax Expense Debit Credit 46800 18720 2. Retained Earnings Accumulated Depreciation-Equipment 7900 Sales Taxes Payable 46800 18720 7900

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 1AP

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