Questions 8 and 9 refer to th following information: X Company prepares monthly

Question

Questions 8 and 9 refer to th following information: 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 $32,400, and rent for the first 4 months was paid in advance. 2. On 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 7% 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 $1,700 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 2335 Submit AnswerIncorrect.Tri 1/3 Previous Tries 9. The required adjusting entries on January 31 decreased total assets by a total of 10392 Submit AnswerI Tries 1/3 Previous Tries

Explanation / Answer

8 Rent expense 2700 =32400/12 Depreciation expense 408 =(55000-6000)/10/12 Interest expense 257 =(55000-11000)*7%/12 Wages expense 5100 =1700*3 Decrease in net income 8465 9 Rent expense 2700 Depreciation expense 408 Decrease in total assets 3108

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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