Question - Error Analysis; Correcting Entries
A partial trial balance of Dickinson Corporation is as follows on December 31, 2010.
Dr. . Cr.
Supplies on hand $ 2,500
Accrued salaries and wages $ 1,500
Interest Receivable 5,100
Prepaid insurance 90,000
Unearned rent -0-
Accrued interest payable 15,000
Additional adjusting data:
A physical count of supplies on hand on December 31, 2010, totaled $1,100.
Through oversight, the Accrued Salaries and Wages account was not changed during 2010. Accrued salaries and wages on December 31, 2010, amounted to $4,400.
The Interest Receivable account was also left unchanged during 2010. Accrued interest on investments amounts to $4,350 on December 31, 2010.
The unexpired portions of the insurance policies totaled $65,000 as of December 31, 2010.
$24,000 was received on January 1, 2010 for the rent of a building for both 2010 and 2011. The entire amount was credited to rental income.
Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of $50,000.
A further review of depreciation calculations of prior years revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.
Instructions - Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2010?