Saved Question 9-Chapter Help S Big Blue Rental Corp. provides rental agent services to apartment building owners. Big Blue Rental Corp.'s preliminary income statement for August 2019 and its August 31, 2019, preliminary balance sheet did not reflect the following: a. Rental commissions of $570 had been earned in August but had not yet been received from or billed to building owners. b. When supplies are purchased, their cost is recorded as an asset. As supplies are used, a record of those used is kept. The record sheet shows that $430 of supplies were used in August. c. Interest on the note payable is to be paid on May 31 and November 30. Interest for August has not been accrued-that is, it has not yet been recorded. (The Interest Payable of $100 on the balance sheet is the amount of the accrued liability at July 31.) The interest rate on this note is 10%. d. Wages of $330 for the last week of August have not been recorded. e. The Rent Expense of $1,230 represents rent for August, September, and October, which was paid early in August. f. Interest of $350 has been earned on notes receivable but has not yet been received. g. Late in August, the board of directors met and declared a cash dividend of $3,500, payable September 10. Once declared, the dividend is a liability of the corporation until it is paid. Required: a. Using the columns provided on the income statement and balance sheet for Big Blue Rental Corp., make the appropriate adjustments/corrections to the statements, and enter the correct amount in the Final column. (Hint Use the five questions of transaction analysis.) BIG BLUE RENTAL CORP. Income Statement August 2019 Adjustments/Corrections Preliminary Debit Credit Final Commissions revenue $ 9,700 Interest revenue 2,400 Total revenues $ 12,100 $ 0 $ 0 $ 0 Rent expense $ 1,230 Wages expense 2,450 Supplies expense 9 of 9 Next rate on this note is 10%. d. Wages of $330 for the last week of August have not been recorded. e. The Rent Expense of $1,230 represents rent for August, September, and October, which was paid early in August. f. Interest of $350 has been earned on notes receivable but has not yet been received. g. Late in August, the board of directors met and declared a cash dividend of $3,500, payable September 10. Once declared, the dividend is a liability of the corporation until it is paid. Required: a. Using the columns provided on the income statement and balance sheet for Big Blue Rental Corp., make the appropriate adjustments/corrections to the statements, and enter the correct amount in the Final column. (Hint Use the five questions of transaction analysis.) BIG BLUE RENTAL CORP. Income Statement August 2019 Adjustments/Corrections Preliminary Debit Credit Final Commissions revenue $ 9,700 Interest revenue 2,400 Total revenues $ 12,100 $ 0 $ 0 $ Rent expense $ 1,230 Wages expense 2,450 Supplies expense Interest expense Total expenses $ 3,680 $ 0 $ 0 $ 0 Net income $ 8,420 $ 0 BIG BLUE RENTAL CORP. Balance Sheet August 31, 2019 Adjustments/Corrections Preliminary Debit Credit Final Assets Cash $ 1,150 Notes receivable 29,500 Commissions receivable Interest receivable Prepaid rent Supplies 2,000 Total assets $ 32,650 $ 0 $ 0 $ 0 Liabilities and Stockholders' Equity Accounts payable $ 550 Notes payable 6,000 100 Interest payable Wages payable Dividends payable Total liabilities Paid-in capital $ 6,650 $ 0 $ 0 $ $ 6,000 Retained earnings: Balance, August 1 $ 11,580 Net income 8,420 Dividends Balance, August 31 $ 20,000 $ 0 $ $ 0 Total stockholders' equity $ 26,000 $ 0 $ 0 $ 0 Total liabilities and stockholders' equity $ 32,650 $ 0 $ 0 $ 0