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On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Rental Revenue Expenses: Income Statement, 2020 Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 153,000 $ 36,000 19,500 22,500 10,000 4,500 1,750 94,250 $ 58,750 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 $460 were not recorded or paid. b. The $625 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,500 for 2020, was not recorded. d. Interest of $1,250 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,600 of revenue that will be earned in January 2021. f. Maintenance supplies costing $900 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $11,500, but it won't actually be paid until 2021. 2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: Total expenses Income before Income tax expense 0

On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Rental Revenue Expenses: Income Statement, 2020 Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 153,000 $ 36,000 19,500 22,500 10,000 4,500 1,750 94,250 $ 58,750 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 $460 were not recorded or paid. b. The $625 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,500 for 2020, was not recorded. d. Interest of $1,250 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,600 of revenue that will be earned in January 2021. f. Maintenance supplies costing $900 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $11,500, but it won't actually be paid until 2021. 2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: Total expenses Income before Income tax expense 0

Intermediate Accounting: Reporting And Analysis
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...
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On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Rental Revenue Expenses: Income Statement, 2020 Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 153,000 $ 36,000 19,500 22,500 10,000 4,500 1,750 94,250 $ 58,750 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 $460 were not recorded or paid. b. The $625 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,500 for 2020, was not recorded. d. Interest of $1,250 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,600 of revenue that will be earned in January 2021. f. Maintenance supplies costing $900 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $11,500, but it won't actually be paid until 2021.
Transcribed Image Text:On December 31, 2020, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Rental Revenue Expenses: Income Statement, 2020 Salaries and Wages Expense Maintenance Expense Rent Expense Utilities Expense Gas and Oil Expense Other Expenses Total Expenses Income $ 153,000 $ 36,000 19,500 22,500 10,000 4,500 1,750 94,250 $ 58,750 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 $460 were not recorded or paid. b. The $625 telephone bill for December 2020 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,500 for 2020, was not recorded. d. Interest of $1,250 was not recorded on the note payable by Dyer Inc. e. The Rental revenue account includes $4,600 of revenue that will be earned in January 2021. f. Maintenance supplies costing $900 were used during 2020, but this has not yet been recorded. g. The income tax expense for 2020 is $11,500, but it won't actually be paid until 2021.
2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: Total expenses Income before Income tax expense 0
Transcribed Image Text:2. Prepare, in proper form, an adjusted income statement for 2020. DYER, INC. Income Statement For the Year Ended December 31, 2020 Expenses: Total expenses Income before Income tax expense 0
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