Reference no: EM133134969
Question - A partial trial balance of Dickinson Ltd. is as follows on December 31, 2021.
|
Dr.
|
Cr.
|
|
Supplies
|
$2,500
|
|
|
Salaries and wages payable
|
|
$1,500
|
|
Interest receivable
|
5,100
|
|
|
Prepaid insurance
|
40,000
|
|
|
Unearned rent
|
|
-0-
|
|
Accrued interest payable
|
|
15,000
|
Additional information:
1. Through oversight, the Salaries and Wages Payable account was not record accordingly during 2021. Actual amount of accrued salaries and wages on December 31, 2021, amounted to $4,400.
2. Insurance for one-year period was unintentionally charged to 2021 insurance expense. The company purchased the insurance on April 1, 2021.
3. $36,000 was received on January 1, 2021, for the rent of a building for both 2021 and 2021. The entire amount was credited to rental income.
4. Depreciation for the year on equipment was erroneously recorded as $36,000 rather than the correct figure of $3,600.
5. A further review of depreciation calculations of prior years (i.e., 2018 and 2019) revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
Required - Assuming that the books have not been closed, what are the correcting entries necessary at December 31, 2021?