Question
Can I asked an income statement for this. Sweet Massage Co. unadjusted trial balance is as follows: Sweet Massage Co. Trial Balance December 31, 2020
Can I asked an income statement for this.
Sweet Massage Co. unadjusted trial balance is as follows: Sweet Massage Co. Trial Balance December 31, 2020 Debit Credit Cash $3,200 Prepaid insurance 480 Massage supplies 990 Massage equipment 3,860 Accum depreciation, massage equipment $770 Building 67,500 Accum depreciation, building 2,840 Land 55,000 Unearned rent 600 Long-term notes payable 10,000 Sharp, capital 102,560 Sharp, withdrawals 2,700 Rent earned 3,400 Fees earned 23,400 Wages expense 4,200 Utilities expense 690 Property taxes expense 600 Interest expense 4,350 TOTAL $143,570 $143,570 INSTRUCTION: USE THE FOLLOWING ADJUSTMENTS AND PREPARE 1. ADJUSTING ENTRIES AND 2. ADJUSTED TRIAL BALANCE (a) Examination of an insurance policy showed $240 of expired insurance. (b) An inventory showed $210 of unused massage supplies on hand. (c) Estimated depreciation expense on massage equipment, $350. (d) Estimated depreciation expense on the building, $2,220. (e) A massage therapist owes $200 for space rental payments, and this was unrecorded at the time the trial balance was prepared. (f) $200 of the Unearned Rent account balance was earned by year-end. (g) The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked three days this week for which she has not been paid. Three months' property taxes, totaling $450, have accrued. This has not been recorded. Expert Answer 100% (1 rating) This solution was written by a subject matter expert. It's designed to help students like you learn core concepts. Anonymous answered this 725 answers :: Solution :: SWEET MASSAGE CO. Sr. No. Adjustment Entries Debit ($) Credit ($) a) Insurance Expenses 240 Prepaid insurance 240 ( To record insurance expenses expired ) b) Supplies Expenses (990 - 210 ) 780 Massage Supplies 780 ( To record supplies expenses) c) Depreciation Expenses - Massage equipment 350 Accumulated Depreciation - Massage Equipment 350 ( To record depreciation expenses on massage equipment ) d) Depreciation expenses - Building 2220 Accumulated depreciation - Building 2220 ( To record Depreciation expenses on building ) e) Rent Receivables 200 Rent Earned 200 ( To record rental income) f) Unearned Rent 200 Rent Earned 200 ( To record rent earned ) g) Wages Expenses ( 50 * 3) 150 Wages Payable 150 ( To record wages accrued ) h) Property tax expenses 450 Property Taxes payable 450 ( To record taxes accrued ) Note : Supplies Expenses = Unadjusted Supplies - Ending Supplies First part is solved for 2nd part give me some more time to solve that and if you have any doubts please ask me in comment section and if my answer helps you in your homework then give me a THUMBS UP
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