You are an accountant for EZ Training Systems. The company CEO has asked you to prepare financial
Question:
You are an accountant for EZ Training Systems. The company CEO has asked you to prepare financial statements without the appropriate adjusting entries.
INSTRUCTIONS
Analyze this information for adjustments and complete the tasks.
1. Net income before adjustments is $22,400. Calculate net income after the adjustments have been made.
2. Explain why the financial statements do not present an accurate picture of the company without considering the adjusting entries.
Transcribed Image Text:
Supplies Prepaid Insurance Beginning $5,000 6,400 Ending $1,200 800
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