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E22-19 Dickinson Corporation

Price: $2.50


A partial trial balance of Dickinson Corporation is as follows on December 31, 2012.


  Dr. Cr.
Supplies   2,500
Salaries and Wages Payable   1,500
Interest Receivable   5,100
Prepaid Insurance   90,000
Unearned Rent   -  
Interest Payable   15,000

Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2012, totaled $1,100.
2. Through oversight, the Salaries and Wages Payable account was not changed during 2012. Accrued
salaries and wages on December 31, 2012, amounted to $4,400.
3. The Interest Receivable account was also left unchanged during 2012. Accrued interest on investments amounts to $4,350 on December 31, 2012.
4. The unexpired portions of the insurance policies totaled $65,000 as of December 31, 2012.
5. $24,000 was received on January 1, 2012, for the rent of a building for both 2012 and 2013. The entire amount was credited to Rent Revenue.
6. Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of
$50,000.
7. 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
(a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2012? (Ignore income tax considerations.)
(b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2012? (Ignore income tax considerations.)

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