E3.9 The income statement of Wolfmother Ltd for the month of July 2014 shows a profit of $1400 based on Service Revenue $5500; Wages Expense $2300; Supplies Expense $1200; and Electricity Expense $600. In reviewing the statement, you discover: 1. The benefit consumed for prepaid insurance during July was not recorded - $300. 2. Supplies expense includes $400 of supplies that are still on hand at 31 July. 3. Depreciation on equipment of $150 was omitted. 4. Accrued but unpaid wages at 31 July of $300 were not included. 5. Services totalling $800 were performed but not invoiced. Required Prepare a correct income statement for July 2014.

E3.9 The income statement of Wolfmother Ltd for the month of July 2014 shows a profit of $1400 based on Service Revenue $5500; Wages Expense $2300; Supplies Expense $1200; and Electricity Expense $600. In reviewing the statement, you discover: 1. The benefit consumed for prepaid insurance during July was not recorded - $300. 2. Supplies expense includes $400 of supplies that are still on hand at 31 July. 3. Depreciation on equipment of $150 was omitted. 4. Accrued but unpaid wages at 31 July of $300 were not included. 5. Services totalling $800 were performed but not invoiced. Required Prepare a correct income statement for July 2014.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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