! 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 $1,200 owed to the company by another company renting part of the building as a storage facility. b. Recorded $14,000 depreciation on the equipment costing $114,000; should have recorded $21,500. c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,400 was earned by the end of the year. d. Recorded a full year of accrued interest expense on a $15,000, 11 percent note payable that has been outstanding only since November 1. e. Failed to adjust Prepaid Insurance to reflect that $620 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-
! 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 $1,200 owed to the company by another company renting part of the building as a storage facility. b. Recorded $14,000 depreciation on the equipment costing $114,000; should have recorded $21,500. c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,400 was earned by the end of the year. d. Recorded a full year of accrued interest expense on a $15,000, 11 percent note payable that has been outstanding only since November 1. e. Failed to adjust Prepaid Insurance to reflect that $620 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-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do not give image format
![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 $1,200 owed to the company by another company renting part of the building as a storage facility.
b. Recorded $14,000 depreciation on the equipment costing $114,000; should have recorded $21,500.
c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,400 was earned by the end of the year.
d. Recorded a full year of accrued interest expense on a $15,000, 11 percent note payable that has been outstanding
only since November 1.
e. Failed to adjust Prepaid Insurance to reflect that $620 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e0fefd6-f6db-496c-9a39-e894d1c47056%2F96b8d51e-a42a-4784-b5c9-1ccef519f4fc%2F9haxmmf_processed.jpeg&w=3840&q=75)
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 $1,200 owed to the company by another company renting part of the building as a storage facility.
b. Recorded $14,000 depreciation on the equipment costing $114,000; should have recorded $21,500.
c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,400 was earned by the end of the year.
d. Recorded a full year of accrued interest expense on a $15,000, 11 percent note payable that has been outstanding
only since November 1.
e. Failed to adjust Prepaid Insurance to reflect that $620 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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