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ch3-15 what would be the net income before adjustments? thank you in advance! Grace Labeille opened a web consulting business called Travel Smart and recorded
ch3-15 what would be the net income before adjustments? thank you in advance!
Grace Labeille opened a web consulting business called Travel Smart and recorded the following transactions in its first month of operations. April 1 Labeille invests $92,000 cash along with office equipment valued at $20,000 in the company. April 2 The company prepaid $11,400 cash for twelve months' rent for office space. The company's policy in record prepaid expenses in balance sheet accounts. April 3 The company made credit purchases for $8,400 in office equipment and $4,000 in office supplies. Payment I due within 10 days. April 6 The company completed services for a client and immediately received $5,200 cash. April 9 The company completed a $8,000 project for a client, who must pay within 30 days. April 13 The company paid $12,400 cash to settle the account payable created on April 3. April 19 The company paid $3,360 canh for the premium on a 12-month insurance policy. The company policy in record prepaid expenses in balance sheet accounts. April 22 The company received $4,800 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $4,300 on credit. April 29 abeille withdrew $5,900 cash from the company for personal use. April 29 The company purchased $1,000 of additional office supplies on credit. April 30 The company paid $1,100 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, 2021, follow. a) On Apri 2, the company prepaid $11,400 cash for twelve months' rent for office space. bi The balance in Prepold Insurance represents the premium pald for a 12-month Insurance policy the polleys coverage began on April 1 c) Office supplies on hand as of April 30 total $1,600. d) Straight-line depreciation of office equipment, based on a 5-year life and a $18,400 salvage value, is $300 per month e) The company has completed work for a client, but has not yet billed the $2,600 fee. f) Wages due to employees, but not yet paid, as of April 30 total $3,000. Adjusted Impact on net Income $ Adjusting entry related to: Income Statement a) Rent Rent expense b) Insurance Insurance expense c) Office supplies Depreciation expense - Office d) Depreciation equipment ) Unbilled foes Services revenue 1) Unpaid wiges Wages expense Total impact on income due to adjustments Not Income before adjustments Account affecting the Balance Sheet Prepaid rent Prepaid insurance Office supplies Accumulated depreciation - Office equipment Accounts receivable Wages payable (950) (280) (3.400) (300) 2.600 (3,000) (5.330) $ Step by Step Solution
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