The accounts of Maritime Specialists Ltd. prior to the year-end adjustments are given below. Adjusting data at

Question:

The accounts of Maritime Specialists Ltd. prior to the year-end adjustments are given below.
The accounts of Maritime Specialists Ltd. prior to the year-end

Adjusting data at the end of the year include:
a. Unearned service revenue that has been earned, $1,000
b. Accrued service revenue, $2,000
c. Supplies used in operations, $3,000
d. Accrued salary expense, $3,000
e. Prepaid insurance expired, $1,000
f. Depreciation expense, building, $2,000
Jon Whale, the principal shareholder, has received an offer to sell Maritime Specialists.
He needs to know the following information within one hour:
a. Net income for the year covered by these data
b. Total assets
c. Total liabilities
d. Total shareholders' equity
e. Proof that Total assets Total liabilities Total shareholders' equity, after all items are updated
Requirement
Without opening any accounts, making any journal entries, or using a worksheet, provide Whale with the requested information. The business is not subject to income tax. Show all computations.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

Question Posted: