Question
Company provides you, its auditor, with the following information that pertains to its income for the year ending December 31, 2018: Service revenue $20,000 Salaries
Company provides you, its auditor, with the following information that pertains to its income for the year ending December 31, 2018:
Service revenue | $20,000 |
Salaries and wages expense | 3,000 |
Rent expense | 10,400 |
After you review the process Lebron used to derive this income statement, you discover that the company had omitted adjusting entries on December 31, 2018. The following adjusting information was omitted:
1. $500 of the $20,000 service revenue is for plumbing that will not be done until January 10, 2019.
2. Employees earned $700 of salaries for work done on December 31, 2018, but they will not be paid until January 2, 2019.
3. Depreciation for Lebrons truck and tools amounted to $2,400 for 2018.
4. Rent expense is $800 a month. On December 31, 2018, Lebron paid $800 rent for January, 2019, which is included in the rent expense given above.
Prepare Lebron Company's income statement after you include the results of the adjusting information provided.
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