a Inc. reported income of $440,000 for the year ended June 30, 20X8. However, the records show that at year end, the following items had not been recorded: On May 1, 20X8, Danza received a $12,000 advance for a six-month job and credited Revenue for $12,000. Interest on a $12,000 note payable bearing a 10% interest rate is paid quarterly. The last payment was made at the end of May 20X8. Danza’s payroll is 14 salaried employees, each earning $900 a week for a 5-day workweek. Friday is payday. June 30 was a Tuesday.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Danza Inc. reported income of $440,000 for the year ended June 30, 20X8. However, the records show that at year end, the following items had not been recorded:

  • On May 1, 20X8, Danza received a $12,000 advance for a six-month job and credited Revenue for $12,000.
  • Interest on a $12,000 note payable bearing a 10% interest rate is paid quarterly. The last payment was made at the end of May 20X8.
  • Danza’s payroll is 14 salaried employees, each earning $900 a week for a 5-day workweek. Friday is payday. June 30 was a Tuesday.
  1. Prepare the adjusting entries necessary for the year ended June 30, 20X8.
  2. What is Danza’s net income for 20X8?
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