On December 31, 2012, Alan and Company prepared an income statement and balance sheet but failed to
Question:
a. Depreciation of $8,000 for the year on equipment was not recorded.
b. Wages amounting to $17,000 for the last three days of December 2012 were not paid and not recorded (the next payroll will be on January 10, 2013).
c. Rent revenue of $4,800 was collected on December 1, 2012, for office space for the three month period December 1, 2012, to February 28, 2013. The $4,800 was credited in full to Unearned Rent Revenue when collected.
d. Income taxes were not recorded. The income tax rate for the company is 30%.
Required:
Complete the following table to show the effects of the four adjusting journal entries (indicate deductions with parentheses):
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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