X Company prepares monthly financial statements. The following transactions occu

Question

X Company prepares monthly financial statements. The following transactions occurred during January: 1. On January 1, a one-year store rental lease was signed for a total of $38,400, and rent for the first 2 months was paid in advance. 2. On January 1, equipment was purchased for $60,000 with a downpayment of $12,000 and a note for the remainder. The note along with annual interest of 8% was due in a year. The estimated life of the equipment is 10 years with a salvage value of $4,000 3. Daily wages are s1,300 and are paid every Friday. The last day in January was a Monday 8. The required adjusting entries on January 31 decreased net income by a total of 5286.67 Submit Answer Incorrect. Tries 2/3 Previous Tries 9. The required adjusting entries on January 31 decreased total assets by a total of $3,667 You are correct. Your receipt no. is 152-3788 Post Discussion Send Feedback

Explanation / Answer

8 Rent 3200 =38400/12 Depreciation expense 467 =(60000-4000)/10/12 Interest expense 320 =48000*8%/12 Wages expense 3900 =1300*3 Decrease in net income 7887

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