The income statement of Sunland Company for the month of July shows net income of $2,760 based on Service Revenue $7,160, Salaries and Wages Expense $2,730, Supplies Expense $920, and Utilities Expense $750. In reviewing the statement, you discover the following: 1. Insurance expired during July of $480 was omitted. 2. Supplies expense includes $380 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $320 was omitted. 4. Accrued but unpaid wages at July 31 of $310 were not included. 5. Service performed but unrecorded totaled $610. Prepare a correct income statement for July 2022. SUNLAND COMPANY Income Statement choose the accounting period For the Month Ended July 31, 2022For the Year Ended July 31, 2022July 31, 2022 select an opening name for section one Net Income / (Loss)Total ExpensesRetained Earnings, July 1Total RevenuesExpensesRetained Earnings, July 31RevenuesDividends enter an income statement item $enter a dollar amount select an opening name for section two ExpensesDividendsRetained Earnings, July 31Total RevenuesNet Income / (Loss)RevenuesRetained Earnings, July 1Total Expenses enter an income statement item $enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount select a closing name for section two Total ExpensesNet Income / (Loss)Retained Earnings, July 31Total RevenuesRevenuesRetained Earnings, July 1ExpensesDividends enter a total for section two select a closing name for this statement Net Income / (Loss)ExpensesRevenuesTotal RevenuesDividendsTotal ExpensesRetained Earnings, July 1Retained Earnings, July 31 $enter a total net income or loss amount
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
The income statement of Sunland Company for the month of July shows net income of $2,760 based on Service Revenue $7,160, Salaries and Wages Expense $2,730, Supplies Expense $920, and Utilities Expense $750. In reviewing the statement, you discover the following:
| 1. | Insurance expired during July of $480 was omitted. | |
| 2. | Supplies expense includes $380 of supplies that are still on hand at July 31. | |
| 3. | ||
| 4. | Accrued but unpaid wages at July 31 of $310 were not included. | |
| 5. | Service performed but unrecorded totaled $610. |
Prepare a correct income statement for July 2022.
|
SUNLAND COMPANY
Income Statement choose the accounting period For the Month Ended July 31, 2022For the Year Ended July 31, 2022July 31, 2022 |
|||
|---|---|---|---|
|
select an opening name for section one Net Income / (Loss)Total ExpensesRetained Earnings, July 1Total RevenuesExpensesRetained Earnings, July 31RevenuesDividends
|
|||
|
enter an income statement item
|
$enter a dollar amount
|
||
|
select an opening name for section two ExpensesDividendsRetained Earnings, July 31Total RevenuesNet Income / (Loss)RevenuesRetained Earnings, July 1Total Expenses
|
|||
|
enter an income statement item
|
$enter a dollar amount
|
||
|
enter an income statement item
|
enter a dollar amount
|
||
|
enter an income statement item
|
enter a dollar amount
|
||
|
enter an income statement item
|
enter a dollar amount
|
||
|
enter an income statement item
|
enter a dollar amount | ||
|
select a closing name for section two Total ExpensesNet Income / (Loss)
|
enter a total for section two | ||
|
select a closing name for this statement Net Income / (Loss)ExpensesRevenuesTotal RevenuesDividendsTotal ExpensesRetained Earnings, July 1Retained Earnings, July 31
|
$enter a total net income or loss amount
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
