Prepare a corrected income statement. A Company prepares monthly financial statements. Presented below is an income...
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Prepare a corrected income statement. A Company prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information considered. Revenues A Company Income Statement For the Month Ended June 30 Expenses Commission revenue Salaries expense Advertising expense Rent expense Depreciation expense Total expenses Profit for the month 3. $6,900 4 1,000 4,300 2,600 $32,000 14,800 Additional data: When the income statement was prepared, the company's accountant neglected to take into consideration the following information: $17,200 1. A hydro bill for $2,200 was received on the last day of the month for electric service for the month of June. 2. A company insurance salesman sold a policy to a client for a premium of $35,000. The company billed the client for the policy and is entitled to a commission of 20%. Supplies on hand at the beginning of the month were $3,700. The company purchased additional supplies during the month for $2,840 in cash and $2,090 of supplies were on hand at June 30. The company purchased a new car at the beginning of the month for $16,080 cash. The car is expected to have a useful life of four years. 5. Salaries owed to employees at the end of the month total $5,000. The salaries will be paid on July 5. Prepare a corrected income statement. A Company prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information considered. Revenues A Company Income Statement For the Month Ended June 30 Expenses Commission revenue Salaries expense Advertising expense Rent expense Depreciation expense Total expenses Profit for the month 3. $6,900 4 1,000 4,300 2,600 $32,000 14,800 Additional data: When the income statement was prepared, the company's accountant neglected to take into consideration the following information: $17,200 1. A hydro bill for $2,200 was received on the last day of the month for electric service for the month of June. 2. A company insurance salesman sold a policy to a client for a premium of $35,000. The company billed the client for the policy and is entitled to a commission of 20%. Supplies on hand at the beginning of the month were $3,700. The company purchased additional supplies during the month for $2,840 in cash and $2,090 of supplies were on hand at June 30. The company purchased a new car at the beginning of the month for $16,080 cash. The car is expected to have a useful life of four years. 5. Salaries owed to employees at the end of the month total $5,000. The salaries will be paid on July 5.
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The corrected income statement for the month of June would include the following adjustments Add Hyd... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
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