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 $24,000, and rent for the first 4 months was paid in advance 2. On January 1, equipment was purchased for $50,000 with a downpayment of $5,000 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 $6,000 3. Daily wages are $2,000 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 68700 Submit Answer Incorrect. Tries 1/3 Previous Tries 9. The required adjusting entries on January 31 decreased total assets by a total of Submit Answer Tries 0/3

Explanation / Answer

8 Rent 2000 =24000/12 Depreciation expense 367 =(50000-6000)/10/12 Interest expense 300 =45000*8%/12 Wages expense 6000 =2000*3 Decrease in net income 8667 9 Rent 2000 Depreciation expense 367 Decrease in assets 2367

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