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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education