Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Income Statement, 2021 $112,000 Rent Revenue Expenses: Salaries and Wages Expense Repairs and Maintenance Expense Rent Expense Utilities Expense Travel Expense Total Expenses $28,100 12,600 8,600 3,600 2,600 55,500 5 56,500 Income 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 $270 were not recorded or paid. b. The $360 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $22,600 for 2021 was not recorded. d. Interest of $460 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $3,600 of revenue to be earned in January 2022. f Supplies costing $560 were used during 2021, but this has not yet been recorded. g. The income tax expense for 2021 is $6,600, but it won't actually be paid until 2022. 2. Prepare, in proper form, an adjusted income statement for 2021.
Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Income Statement, 2021 $112,000 Rent Revenue Expenses: Salaries and Wages Expense Repairs and Maintenance Expense Rent Expense Utilities Expense Travel Expense Total Expenses $28,100 12,600 8,600 3,600 2,600 55,500 5 56,500 Income 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 $270 were not recorded or paid. b. The $360 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $22,600 for 2021 was not recorded. d. Interest of $460 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $3,600 of revenue to be earned in January 2022. f Supplies costing $560 were used during 2021, but this has not yet been recorded. g. The income tax expense for 2021 is $6,600, but it won't actually be paid until 2022. 2. Prepare, in proper form, an adjusted income statement for 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
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Transcribed Image Text:Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual
accounting period, the company bookkeeper prepared the following preliminary income statement:
Income Statement, 2021
Rent Revenue
Expenses:
Salaries and Wages Expense
Repairs and Maintenance Expense
Rent Expense
Utilities Expense
Travel Expense
Total Expenses
$112,000
$28,100
12,600
৪, 600
3,600
2,600
55,500
$ 56,500
Income
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 $270 were not recorded or paid.
b. The $360 telephone bill for December 2021 has not been recorded or paid.
c. Depreciation of equipment amounting to $22,600 for 2021 was not recorded.
d. Interest of $460 was not recorded on the notes payable by Dyer, Incorporated.
e. The Rental Revenue account includes $3,600 of revenue to be earned in January 2022,
f Supplies costing $560 were used during 2021, but this has not yet been recorded.
g. The income tax expense for 2021 is $6,600, but it won't actually be paid until 2022.
2. Prepare, in proper form, an adjusted income statement for 2021.
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