Question

A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2015.

Dr.

Cr.

(a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2015? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

(b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2015? (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

(c) Pass the necessary adjusting entries for the following taking into account income tax effects (40% tax rate) and assuming that the books have been closed. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

 

 

Dr.

 

Cr.

Supplies

 

$2,700

 

 

Salaries and wages payable

 

 

 

$1,500

Interest Receivable

 

5,100

 

 

Prepaid Insurance

 

90,000

 

 

Unearned Rent

 

 

 

0

Interest Payable

 

 

 

15,000