X Company prepares monthly financial statements. The following transactions occu

Question

X Company prepares monthly financial statements. The following transactions occurred during January 1. On January 1, a one-year store rental lease was signed for a total of $39,600, and rent for the first 2 months was paid in advance. 2, on January 1, equipment was purchased for $60,000 with a downpayment of $12,000 and a note for the remainder. The note along with annual interest of 8% was due in a year. The estimated life of the equipment is 10 years with a salvage value of $6,000 3. Daily wages are $1,400 and are paid every Friday. The last day in January was a Monday. 8. The required adjusting entries on January 31 decreased net income by a total of 2170 Submit Answer Incorrect. Tries 2/3 Previous Tries 9. The required adjusting entries on January 31 decreased total assets by a total of $3,750 You are correct. Your receipt no, is 152-4811 Previous Tries

Explanation / Answer

8 Rent 3300 =39600/12 Depreciation expense 450 =(50000-4000)/10/12 Interest expense 320 =48000*8%/12 Wages expense 4200 =1700*3 Decrease in net income 8270 9 Rent 3300 Depreciation expense 450 Decrease in assets 3750

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