Check my work Required information The following information applies to the ques

Question

Check my work Required information The following information applies to the questions displayed below] Golf Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. redit Further Intormation Cash Supplies Deferred Revenue $31,400 As reported on December 31 bank statemept Based on count, only $150 of supplies stil1 and $450 for January lessons December 28. They have not yet been paid s 2,950 of this amount, $2,500 was received for Dec Salaries and Wages payable 0 Enployees were paid $2,500 for 10 days of Income Tax Payable Interest Payable Notes Payable (long-term) December 29 and 30. year's tax notes payable for the current period 0 The company has paid last year's 0 The company has not paid the $115 of interes 13,800 This one-year note was taken out this year on 1,000 This anount vas contributed for common stock Common Stock years Retained Earnings 2,500 This is the balance reported at the end of 1a Service Revenue Salaries and Wages Expense Supplies Expense 9 150 Most custoners pay cash for lessons each provided, but sone customers pay in adv Enployees worked through December 30, bot did 35,600 Decenber 31 this is the cost of supplies used through Now The company has not paid the $11s of notes payable for the current period The company has an average tax rate of 208. 1,900 Interest Expense Income Tax Expense 88 . 1 8 9

Explanation / Answer

Balance Sheet Account Related account of Income Statement Amount of Adjustment Supplies (Inventory) Supplies Expense $350 Unearned Revenue Service Revenue $2,500 Salaries and Wages Payable Salary and Wage Expense $500 [$2500*2/10] Income Tax payable Income Tax Expense $2637[ see working note] Interest Payable Interest Expense $115 Working Note Adjusted Service Revenue $51,650 [49150+2500] Expense Salaries and Wages $36,100 [35600+500] Supplies Expense $2,250 [1900+350] Interest Expense $115 Total Expenses $38,465 Net Income Before Tax $13,185 Tax @ 20% $2,637 Net Income after Tax $10,548

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