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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. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Wages for the last three days of December amounting to $460 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 460 Record entry Clear entry View general journal >

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. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Wages for the last three days of December amounting to $460 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 460 Record entry Clear entry View general journal >

FINANCIAL ACCOUNTING
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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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.
Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Wages for the last three days of December amounting to $460 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 460 Record entry Clear entry View general journal >
Transcribed Image Text:Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Wages for the last three days of December amounting to $460 were not recorded or paid. Note: Enter debits before credits. Transaction a. General Journal Debit Credit 460 Record entry Clear entry View general journal >
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