Required information The following information applies to the questions displaye

Question

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. Cash Supplies Deferred Revenue $31,400 500 As reported on De r 31 bank statement Based on count, only $150 of supplies still ex and $450 for January lessons December 28. They have not yet been paid 2,950 of this amount, $2,500 Salaries and Wages payable 0 Enployees were paid $2,500 for 10 days of Income Tax Payable Interest Payable Notes Payable (long-term) 0 The company has paid last year's incode tax b 0 The company has not paid the $115 of interest December 29 and 30. year's tax. notes payable for the current period 13,800 This one-year note was taken out this year on De 1,000 This amount vas contributed for common stock in s Common Stock Retained Earnings 2,500 This is the balance reported at the end of last Service Revenue 49,150 Most custoners pay cash for lessons each ti 35,600 1,900 Enployees worked through December 30, bde did no This is the cost of supplies used through Novemb The company has not paid the $115 of interest c Salaries and Wages Expense Interest Expense 25 4 8

Explanation / Answer

Note : The Net Income before adjustment was =(49150-35600-1900) 11650 Requirement The calculation of adjusted net income for the year Golf Academy, Inc Income statement Service Revenue 51650 2500 added from Unearned revenue Less : Expenses Salaries expense 36100 500 added for 2 days of employee's work Supplies expense 2250 350 added after counting year end supplies Interest expense 115 Total expenses 38465 Net Income before taxes 13185 Income Tax expense@20% 2637 Net Income 10548 Requirement The Net Income decrease by 1102

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