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. |
