30-Jun-09 unadjusted trial bal adjusted trial bal Account Titles debit credit de

Question

30-Jun-09
unadjusted trial bal adjusted trial bal
Account Titles debit credit debit credit

cash 13,000 13,000
acct receivable 1,500 1,800
prepaid insur 600 200
equipment 60,000 60,000
accum depr 16,500 22,000
wages payable 100
capital stock 25,000 25,000
Retained earnings 11,600 11,600
Service revenues 38,000 38,300
wage expense 16,000 16,100
depreciation exp 5,500
insurance exp 400
Totals 91,100 91,100 97,000 97,000

a. Reconstruct the adjusting entries and give a brief explanation of each.
b. What is the amount of net income?
c. What is earnings per share (EPS) assuming 1,000 shares of stock are outstanding?
Please help.

Explanation / Answer

a) DR Depreciation expense 5,500 CR Accumulated depreciation 5,500 Book depreciation on fixed assets for period DR Insurance expense 400 CR Prepaid insurance 400 Recognize expired prepaid insurance for period. DR Wage expense 100 CR Wages payable 100 Recognize unpaid wages for period b) Service revenues 38,300 Less :Expenses Wage expense 16,100 Depreciation expense 5,500 Insurance expense 400 Total expenses 22,000 Net income 16,300 c)EPS 16,300/1,000= $16.30

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.