An accountant made the following adjustments at December 31, the end of the accounting period: a. Prepaid
Question:
a. Prepaid insurance, beginning, $300. Payments for insurance during the period, $900. Prepaid insurance, ending, $500.
b. Interest revenue accrued, $1,300.
c. Unearned service revenue, beginning, $1,200. Unearned service revenue, ending, $300.
d. Depreciation, $4,400.
e. Employees’ salaries owed for three days of a fi ve-day work week; weekly payroll, $17,000.
f. Income before income tax, $26,000. Income tax rate is 25%.
Requirements
1. Journalize the adjusting entries.
2. Suppose the adjustments were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Question Posted: