Required information [The following information applies to the questions displayed below.] North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Cash Accounts Receivable Prepaid Rent Account Titles Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,200. b. Depreciation expense for the year, $1,000. c. Utilities used, unrecorded, and unpaid $9,000. d. Income tax expense, $390. Net Income Debit $12,000 6,000 2,400 21,000 Net income 25,000 12,500 Analysis 0 0 0 $78,900 Credit $1,000 1,000 0 4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? 24,800 2,100 50,000 Complete this question by entering your answers in the tabs below. $78,900 Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? by
Required information [The following information applies to the questions displayed below.] North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Cash Accounts Receivable Prepaid Rent Account Titles Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,200. b. Depreciation expense for the year, $1,000. c. Utilities used, unrecorded, and unpaid $9,000. d. Income tax expense, $390. Net Income Debit $12,000 6,000 2,400 21,000 Net income 25,000 12,500 Analysis 0 0 0 $78,900 Credit $1,000 1,000 0 4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? 24,800 2,100 50,000 Complete this question by entering your answers in the tabs below. $78,900 Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A-7
![Required information
[The following information applies to the questions displayed below.]
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December
31.
Cash
Accounts Receivable
Prepaid Rent
Equipment
Accumulated Depreciation
Account Titles
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Sales Revenue
Salaries and Wages Expense
Utilities Expense
Rent Expense
Depreciation Expense
Income Tax Expense
Totals
Other data not yet recorded at December 31:
a. Rent expired during the year, $1,200.
b. Depreciation expense for the year, $1,000.
c. Utilities used, unrecorded, and unpaid $9,000.
d. Income tax expense, $390.
Net Income
Debit
$12,000
6,000
2,400
21,000
Net income
25,000
12,500
Analysis
0
0
0
$78,900
Credit
$1,000
1,000
0
4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the
adjusting entries not been recorded, would net income have been overstated or understated, and by what amount?
24,800
2,100
50,000
Complete this question by entering your answers in the tabs below.
$78,900
4
Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount?
by
12-20
10000
TORS
29784](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fad3a61-5282-41a0-9bbc-c7bdc32f595b%2F86b97386-4e62-4ac8-a194-5d3bee4a0bfa%2F5nnfo3k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December
31.
Cash
Accounts Receivable
Prepaid Rent
Equipment
Accumulated Depreciation
Account Titles
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Sales Revenue
Salaries and Wages Expense
Utilities Expense
Rent Expense
Depreciation Expense
Income Tax Expense
Totals
Other data not yet recorded at December 31:
a. Rent expired during the year, $1,200.
b. Depreciation expense for the year, $1,000.
c. Utilities used, unrecorded, and unpaid $9,000.
d. Income tax expense, $390.
Net Income
Debit
$12,000
6,000
2,400
21,000
Net income
25,000
12,500
Analysis
0
0
0
$78,900
Credit
$1,000
1,000
0
4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the
adjusting entries not been recorded, would net income have been overstated or understated, and by what amount?
24,800
2,100
50,000
Complete this question by entering your answers in the tabs below.
$78,900
4
Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount?
by
12-20
10000
TORS
29784
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