During the month of September, the Bridge City Go-Kart Company had the following business activities: a....

 

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During the month of September, the Bridge City Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $21,600. b. On September 1, received $72,000 for season tickets for 12-month admission to the racetrack. c. On September 1, booked the racetrack for a private organization that will use the track one day per month for $11,500 each time, to be paid in the following month. The organization uses the track on September 30. d. On September 1, hired a new manager at a monthly salary of $8,700, to be paid the first Monday following the end of the month. Required: First prepare the journal entry, if any, required to record each of the initial business activities on September 1. Then, prepare the adjusting journal entries, if any, required on September 30. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 45678 On September 1, paid rent on the track facility for six months at a total cost of $21,600. Note: Enter debits before credits. Date Sept 1 General Journal Debit Credit Record entry Clear entry View general journal On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Income Statement, 2020 Rental Revenue Expenses: Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 157,000 $ 37,000 20,500 24,300 10,800 4,700 1,850 99,150 57,850 You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $480 were not recorded or paid. b. The $655 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,700 for 2020, was not recorded. d. Interest of $1,350 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,680 of revenue that will be earned in January 2021. f. Maintenance supplies costing $940 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $12,100, but it won't actually be paid until 2021. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 34567 Wages for the last three days of December amounting to $480 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal > 2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: 0 Total expenses Income before Income tax expense 0 3. This part of the question is not part of your Connect assignment. During the month of September, the Bridge City Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $21,600. b. On September 1, received $72,000 for season tickets for 12-month admission to the racetrack. c. On September 1, booked the racetrack for a private organization that will use the track one day per month for $11,500 each time, to be paid in the following month. The organization uses the track on September 30. d. On September 1, hired a new manager at a monthly salary of $8,700, to be paid the first Monday following the end of the month. Required: First prepare the journal entry, if any, required to record each of the initial business activities on September 1. Then, prepare the adjusting journal entries, if any, required on September 30. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 45678 On September 1, paid rent on the track facility for six months at a total cost of $21,600. Note: Enter debits before credits. Date Sept 1 General Journal Debit Credit Record entry Clear entry View general journal On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Income Statement, 2020 Rental Revenue Expenses: Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 157,000 $ 37,000 20,500 24,300 10,800 4,700 1,850 99,150 57,850 You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $480 were not recorded or paid. b. The $655 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,700 for 2020, was not recorded. d. Interest of $1,350 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,680 of revenue that will be earned in January 2021. f. Maintenance supplies costing $940 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $12,100, but it won't actually be paid until 2021. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 34567 Wages for the last three days of December amounting to $480 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal > 2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: 0 Total expenses Income before Income tax expense 0 3. This part of the question is not part of your Connect assignment.