Question

The income statement of Montee Co. for the month of July shows net income of $2,100 based on Service Revenue $6,100, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $500. In reviewing the statement, you discover the following.

Prepare a correct income statement for July 2017.Question

Exercise 4-5

Adjustments

Account Titles

Debit

Credit

Account Titles and Explanation

Debit

Credit

(To record service revenue on account)

(To record expired insurance)

(To record depreciation)

(To record accrued salaries)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Income Statement

Balance Sheet

Account Titles

Debit

Credit

Debit

Credit

QUESTION 3

Exercise 4-7

VICTORIA LEE COMPANY

Adjusted Trial Balance

For the Month Ended June 30, 2017

Adjusted Trial Balance

Account Titles

Debit

Credit

No.

Account Titles and Explanation

Debit

Credit

(To close revenue account)

(To close expense accounts)

(To close net income / (loss))

(To close drawings)

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Debit

Credit

1.

 

Insurance expired during July of $500 was omitted.

2.

 

Supplies expense includes $250 of supplies that are still on hand at July 31.

3.

 

Depreciation on equipment of $150 was omitted.

4.

 

Accrued but unpaid salaries and wages at July 31 of $300 were not included.

5.

 

Services performed but unrecorded totaled $500.