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 $36,000, and rent for the first 2 months was paid in advance 2. n January 1, equipment was purchased for $55,000 with a downpayment of $11,000 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 1,300 and are paid every Friday. The last day in January was a Tuesday. 8. The required adjusting entries on January 31 decreased net income by a total of Subnit Answer Tries oy3 9. The required adjusting entries on January 31 decreased total assets by a total of Subrnit Answer Tries 0y3

Explanation / Answer

8 Rent expense 3000 =36000/12 Depreciation expense 425 =(55000-4000)/10/12 Interest expense 293 =(55000-11000)*8%/12 Wages expense 5200 =1300*4 Decrease in net income 8918

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