göir lessoris. Is uauhu uunc butt olf Academy, Inc., provides privaté formation
ID: 2339460 • Letter: G
Question
göir lessoris. Is uauhu uunc butt olf Academy, Inc., provides privaté formation about selected accounts. Debit $31,000 420 Credit Further Information Account Names Cash Supplies Deferred Revenue Salaries and Wages payable As reported on December 31 bank statement. Based on count, only $110 of supplies still exist. $410 for January lessons. December 28. Ty have not yet been paid for work on 2,510 of this amount, $2,10e was received for December lessons and 0 Employees were paid $2,900 for 10 days of work through December 29 and 30. year's tax notes payable for the current period. 0 The company has paid last year's income tax but not this Income Tax Payable Interest Payable Notes Payable (long-term) Common Stock Retained Earnings 0 The company has not paid the $105 of interest owed on its 12,600 This one-year note was taken out this year on December 1. 1,000 This amount was contributed for common stock in prior years. 2,100 This is the balance reported at the end of last year Service Revenue 49,910 Most customers pay cash for lessons each time they are provided, but some customers pay in advance. Employees worked through December 30, but did not work on December 31. This is the cost of supplies used through November 30. Salaries and Wages Expense 35,200 Supplies Expense Interest 1,500 The company has not paid the $105 of interest owe notes payable for the current period. Expense Income Tax Expense Totals The company has an average tax rate of 20%. $68,120 $68,120Explanation / Answer
NOTES
1) SUPPLIES = as you can see that in supply expense , cost of supply upto nov is included but cost of dec needs to be adjusted. this we will calculate using supplies account.There is amount in supplies account of 420$ but actually there is only supplies worth 110$ so remaining must be used in december so we will adjust that amount.
2) REVENUE = out of total deffered revenue of 2510 , 410 belong to next year but 2100 belong to current year in december month so we should not deffer it hence we will trs it to revenue account.
3) SALARY = 2 days wages were dur for 29th and 30th dec. so will record it as expense and show them as payable.
4) INTEREST = 105$ amount of interest which is not paid till now will be adjusted in expense and payable account.
5) INCOME TAX = to calculate income tax we have to prepare income statement as follows
Income statement
Hence curren year expense will be shown as expense and also as payable in balance sheet.
Adj Balance sheet account related income st. Amount 1 Supplies Supplies exp 310 2 Deffered revenue Service revenue 2100 3 Salary payable Salary expense 580 4 Interest payable Interest exp 105 5 Income tax payable Income tax exp 2863Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.