LUS Kimmel, Accounting, 6e (ACC 110/2 en Assignment Your answer is partially cor

Question

LUS Kimmel, Accounting, 6e (ACC 110/2 en Assignment Your answer is partially correct. Try again. The income statement of Wildhorse Co. for the month of July shows net income of $4,240 based on Service Revenue $8,400, Salaries and Wages Expense $2,510, Supplies Expense s950, and Utilities Expense $700. In reviewing the statement, you discover the following: 1. Insurance expired during July of $530 was omitted. 2. Supplies expense includes $220 of supplies that are still on hand at July 31 3. Depreciation on equipment of $330 was omitted. 4. Accrued but unpaid wages at July 31 of $430 were not included 5. Service performed but unrecorded totaled $680. t for July 2017 co. 2510

Explanation / Answer

Correct Income statement

Explanation

Unrecorded service revenue is added to the service revenue already recorded

Expired insurance is now recorded as expenses

Supplies still in stock are reduced from given expenses....... as they are still available for consumption.

Omitted Depreciation is included

Salaries and wages are added with accrued but not paid amount

Revenues Sales revenue 9080 Expenses Salaries and wage expenses 2940 Insurance expenses 530 Supplies expenses 730 Depreciation expenses 330 Utilities expenses 700 Total expenses 5230 Net Income 3850

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