Cullumber Industries collected $104.000 from customers in 2020. Of the amount collected, $24,300 was for services performed in 2019. In addition. Cullumber performed services worth $40,300 in 2020, which will not be collected until 2021, Cullumber Industries also paid $71,800 for expenses in 2020. Of the amount paid. $30,500 was for expenses incurred on account in 2019. In addition, Cullumber incurred $41.800 of expenses in 2020, which will not be paid until 2021. (a) Compute 2020 Cash-basis net income. Cash-basis net income (b) Compute 2020 accrual basis net income. Accrual basis net income Credit Debit $7.200 2.700 18,750 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $8,400 20,000 9,900 60,000 0 14,000 An analysis of the accounts shows the following. 1 2 3 The equipment depreciates $300 per month. One-third of the unearned rent revenue was earned during the quarter. Interest of $500 is accrued on the notes payable Supplies on hand total $530 Insurance expires at the rate of $400 per month 4 5. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense Insurance Expense. Interest Payable, and Supplies Expense. (Credit account titles are automatically Indented The trial balances before and after adjustment for Blossom Company at the end of its fiscal year are presented below. BLOSSOM COMPANY Trial Balance August 31, 2020 Before Adjustment Dr. Cr. Cash $10,000 Accounts Receivable 8,500 Supplies 2.300 Prepaid Insurance 3,700 Equipment 12.000 Accumulated Depreciation Equipment $ 3.400 Accounts Payable 5.700 Salaries and Wages Payable 0 Uncanned Rent Revenue 1.300 Owner's Capital 13,100 Service Revenue 33.800 Rent Revenu 10,800 Salaries and Wages Expense 16.800 Supplies Expense O Rent Expense 14,800 Insurance Expense 0 Depreciation Experte 0 $68.100 $68.100 After Adjustment Dr. Cr. $10,000 9.500 500 2.500 12,000 $4.300 5,700 1,000 600 13.100 34,800 11.500 17.500 1,800 14,800 1.200 200 $71.000 $71,000 The trial balances before and after adjustment for Blossom Company at the end of its fiscal year are presented below. BLOSSOM COMPANY Trial Balance August 31, 2020 Before Adjustment Dr. Cr. Cash $10,000 Accounts Receivable 8,500 Supplies 2.300 Prepaid Insurance 3,700 Equipment 12.000 Accumulated Depreciation Equipment $ 3.400 Accounts Payable 5.700 Salaries and Wapes Payable 0 Unearned Rent Revenue 1,300 Owner's Capital 13.100 Service Revenue 33.800 Rent Revenue 10.800 Satories and Wages Expense 16.800 Supplies Expense Rent Expense 14,800 Insurance Expense 0 Depreciation Expense 0 $68.100 $68.100 After Adjustment Dr. Cr. $10,000 9.500 500 2,500 12.000 $ 4,300 5.700 1.000 600 13.100 34.800 11.500 17.800 1.800 14,800 1.200 900 $71.000 $71.000 368.100 101 112 126 130 $4,700 6,200 1,700 4,800 10,800 149 201 209 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Rent Expense 301 $4,800 1,900 18.500 7.700 400 726 729 3,500 1,200 $32.900 $32.900 1 In addition to those accounts listed on the trial balance, the chart of accounts for Jones Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation Equipment. No 212 Salaries and Wages Payable, No.631 Supplies Expense, No. 717 Depreciation Expense, No 722 Insurance Expense, and No. 732 Utilities Expense. Other data: $600 of supplies have been used during the month. 2 Utilities expense incurred but not paid on May 31, 2020, $300. 3 The insurance policy is for 2 years $300 of the balance in the unearned service revenue account remains unearned at the end of the month 5. May 31 is a Wednesday, and employees are paid on Fridays. Jones Consulting has two employees who are paid $800 each for a 5-day work week The office furniture has a 5-year life with no salvage value. It is being depreciated at $180 per month for 60 months Invoicesenting $1.300 of services performed during the math have not been recorded as of May 31 On November 1, 2020, the account balances of Pharoah Equipment Repair were as follows. No. 101 112 126 153 Debits Cash Accounts Receivable Supplies Equipment $ 2.400 4,200 1,810 12,960 No. 154 201 209 212 301 Credits Accumulated Depreciation--Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Owner's Capital $ 2,160 2,650 1,200 662 14,698 $21,370 $21,370 During November, the following summary transactions were completed. Nov. 8 Paid $1.740 for salaries due employees, of which $662 is for October salaries. 10 Received $3,430 cash from customers on account. 12 Received $3,110 cash for services performed in November 15 Purchased equipment on account $1.970 17 Purchased supplies on account $710. 20 Pald creditors on account $2.680 22 Paid November rent $360 25 Paid salaries $1.740 27 Performed services on account and billed customers for these services $1,910, 29 Receved $640 from customers for future service, Enter the November 1 balances in the ledger accounts. No. 101 Balance Debit Credit Ref Ref No. 112 Balance Debit Credit No. 126 Balance Ref Debit Credit Cash Date Explanation Nov. 1 Balance Accounts Receivable Date Explanation Nov. 1 Balance Supplies Date Explanation Nov. 1 Balance Equipment Date Explanation Balance Accumulated Depreciation- Equipment Date Explanation Nov. 1 Balance Accounts Payable Date Explanation Nov. 1 Balance Unearned Service Revenue Date Explanation No. 153 Balance Ref Debit Credit Nov No. 154 Ref Debit Credit Balance Ref Debit Credit No. 201 Balance Ref Debit No. 209 Balance Credit