! 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-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $206,400 and has accumulated depreciation of $185,760. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? a.Equipment, credit, $206,400 b.Gain on Disposal of Asset, credit, $20,640 c.Accumulated Depreciation, debit, $206,400 d.Loss on Disposal of Asset, debit, $185,760
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At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the home office…