US Kimmel, Survey of Accounting, le (ACCT 604) $213,800 g expense Salaries and w
ID: 2332983 • Letter: U
Question
US Kimmel, Survey of Accounting, le (ACCT 604) $213,800 g expense Salaries and wages expense 82,015 Depreciation expense 2,750 4,105 Total operating expenses 94,025 Net income income statement and other You first look at the tabular summary. In addition to the account balances reported above in the income statement, it contains the ollowing additional selected balances at June 30, 2017 Supplies $ 9,160 14,400 14,000 Prepaid Insurance You then make inquinies and discover the following. 2. There were $1,810 of supplies on hand at June 30 133 AM e to search 9/15/2018Explanation / Answer
Answers
Original Amount stated in Income Statement
To be increased
To be decreased
Correct Amount after adjustments
Explanation for the treatment made
Rent Revenue
$ 213,800.00
$ 57,060.00
$ 156,740.00
Revenue includes advance payment received. This is not part of revenue earned.
Advertising Expense
$ 4,245.00
$ 130.00
$ 4,375.00
Bill received, expense due
Salaries & Wages Expense
$ 82,015.00
$ 82,015.00
No change
Utilities Expense
$ 910.00
$ 225.00
$ 1,135.00
Bill received, expense due
Depreciation expense
$ 2,750.00
$ 2,750.00
No change
Maintenance & repair expense
$ 4,105.00
$ 4,480.00
$ 8,585.00
Bill received, expense due
Supplies expense
$ 7,350.00
$ 7,350.00
Supplies balance in books is $9160, but at hand its $1810, Hence $ 7350 is used.
Insurance Expense
$ 3,600.00
$ 3,600.00
Insurance of $14400 is for 12 months. For 3 months, insurance expired = 14400 x 3/12
Interest expense
$ 140.00
$ 140.00
Interest for May and June to be recorded at 6%. $ 14000 x 6% x 2/12
Income Taxes expense
$ 14,250.00
$ 14,250.00
Income tax expense is to be recorded.
Net Income
$ 119,775.00
$ 32,540.00
Income Statement
For the quarter ended June 30, 2017
Revenues:
Rent Revenue
$ 156,740.00
Expenses:
Advertising Expense
$ 4,375.00
Salaries & Wages Expense
$ 82,015.00
Utilities Expense
$ 1,135.00
Depreciation expense
$ 2,750.00
Maintenance & repair expense
$ 8,585.00
Supplies expense
$ 7,350.00
Insurance Expense
$ 3,600.00
Interest expense
$ 140.00
Income Taxes expense
$ 14,250.00
Total Expenses
$ 124,200.00
Net Income
$ 32,540.00
Original Amount stated in Income Statement
To be increased
To be decreased
Correct Amount after adjustments
Explanation for the treatment made
Rent Revenue
$ 213,800.00
$ 57,060.00
$ 156,740.00
Revenue includes advance payment received. This is not part of revenue earned.
Advertising Expense
$ 4,245.00
$ 130.00
$ 4,375.00
Bill received, expense due
Salaries & Wages Expense
$ 82,015.00
$ 82,015.00
No change
Utilities Expense
$ 910.00
$ 225.00
$ 1,135.00
Bill received, expense due
Depreciation expense
$ 2,750.00
$ 2,750.00
No change
Maintenance & repair expense
$ 4,105.00
$ 4,480.00
$ 8,585.00
Bill received, expense due
Supplies expense
$ 7,350.00
$ 7,350.00
Supplies balance in books is $9160, but at hand its $1810, Hence $ 7350 is used.
Insurance Expense
$ 3,600.00
$ 3,600.00
Insurance of $14400 is for 12 months. For 3 months, insurance expired = 14400 x 3/12
Interest expense
$ 140.00
$ 140.00
Interest for May and June to be recorded at 6%. $ 14000 x 6% x 2/12
Income Taxes expense
$ 14,250.00
$ 14,250.00
Income tax expense is to be recorded.
Net Income
$ 119,775.00
$ 32,540.00
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