E3-44. (Learning Objectives 3, 4: Computing financial statement amounts) The accounts of Gretel Company prior to the
Question:
E3-44. (Learning Objectives 3, 4: Computing financial statement amounts) The accounts of Gretel Company prior to the year-end adjustments follow.
Adjusting data at the end of the year include which of the following?
a. Unearned service revenue that has been earned, $1,820
b. Accrued service revenue, $34,000
c. Supplies used in operations, $3,400
d. Accrued salary expense, $3,300
e. Prepaid insurance expired, $1,400
f. Depreciation expense—building, $2,500 Hansel Lacourse, the principal shareholder, has received an offer to sell Gretel Company. He needs to know the following information within one hour:
a. Net income for the year covered by these data
b. Total assets
c. Total liabilities
d. Total shareholders’ equity
e. Proof that Total assets = Total liabilities + Total shareholders’ equity after all items are updated.
Requirement 1. Without opening any accounts, making any journal entries, or using a work sheet, provide Mr. Lacourse with the requested information. The business is not subject to income tax.
Step by Step Answer:
Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison