Required information [The following information applies to the questions displayed below.) Kinney-Harvey, Incorporated, publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,600 owed to the company by another company renting part of the building as a storage facility. b. Recorded $15,000 depreciation on the equipment costing $115,000, should have recorded $19,000. c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,000 was earned by the end of the year. d. Recorded a full year of accrued interest expense on a $13,800, 11 percent note payable that has been outstanding only since November 1. e. Failed to adjust Prepaid Insurance to reflect that $630 of insurance coverage had been used.
Required information [The following information applies to the questions displayed below.) Kinney-Harvey, Incorporated, publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,600 owed to the company by another company renting part of the building as a storage facility. b. Recorded $15,000 depreciation on the equipment costing $115,000, should have recorded $19,000. c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,000 was earned by the end of the year. d. Recorded a full year of accrued interest expense on a $13,800, 11 percent note payable that has been outstanding only since November 1. e. Failed to adjust Prepaid Insurance to reflect that $630 of insurance coverage had been used.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
Kinney-Harvey, Incorporated, publishers of movie and song trivia books, made the following errors in adjusting the
accounts at year-end (December 31):
a. Did not accrue $1,600 owed to the company by another company renting part of the building as a storage facility.
b. Recorded $15,000 depreciation on the equipment costing $115,000; should have recorded $19,000.
c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,000 was earned by the end of the year.
d. Recorded a full year of accrued interest expense on a $13,800, 11 percent note payable that has been outstanding
only since November 1.
e. Failed to adjust Prepaid Insurance to reflect that $630 of insurance coverage had been used.
Required:
1. Prepare (a) the adjusting journal entry that was made, if any, and (b) the adjusting journal entry that should have been made at year-
end.
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