q 3.2) a) Requirement 1. There are five adjustments that need to be made before
ID: 2522827 • Letter: Q
Question
q 3.2)
a) Requirement 1. There are five adjustments that need to be made before the financial statements can be prepared at year end. For? each, show the adjustment in the accounting equation.
b) Prepare an income statement for the year ended December? 31, 2010
Cash paid to employees for salaries and wages Cash collected from customers for service rendered Long-term notes payable Cash Common stock Equipment Prepaid insurance Inventory Prepaid rent Retained earnings Salaries and wages expenses Service revenues $ 500,000 2,300,000 205,000 390,000 70,000 550,000 48,000 140,000 63,000 210,000 525,000 2,500,000Explanation / Answer
Question seems incomeplete, however can give journal entries for adjustement without amount. Amount can be taken from compete question:
1 Depreciation Expense Debit To Accumulated Depreciation (Depreciation on equipment) (Cost-Salvage Value)/Life 2 Interest Expense Debit To Interest Payable (Interest on Note pYable) (205000*Interest Rate*Time) 3 Insurance Expense Debit To Prepaid Insurance (Insurance expense for the period) 4 Rent Expense Debit To Prepaid Rent (Rent expense for the period) 5 Salaries and Wages Expense Debit 25000 To Salaries and wages payable 25000 (Wages earned but not paid) (525000-500000)Related Questions
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