{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T09:29:21-04:00", "answer_date": "2024-06-06 09:29:21", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2356030", "url": "\/study-help\/questions\/during-the-course-of-your-examination-of-the-financial-statements-2356030", "question_creation_date_js": "2024-06-06T09:29:21-04:00", "question_creation_date": "Jun 06, 2024 09:29 AM", "meta_title": "[Solved] During the course of your examination of | SolutionInn", "meta_description": "Answer of - During the course of your examination of the financial statements of for the year ended December 31, Year 1, you disco | SolutionInn", "meta_keywords": "course,examination,financial,statements,year,ended,december,31,1,discover,net,income", "question_title_h1": "During the course of your examination of the financial statements of for the year ended December 31, Year 1, you discover net income in Year", "question_title": "During the course of your examination of the financial statements of for", "question_title_for_js_snippet": "During the course of your examination of the financial statements of for the year ended December 31, Year 1, you discover net income in Year 1 is $25,000 but no adjusting entries have been prepared by anyone To prepare adjusting entries for c you discover the following items a An insurance policy covering three years was purchased on January 1, Year 1, for $2,100 The entire amount was debited to Insurance expense b During Year 1, the company received a $500 cash advance from a customer for services to be provided in Year 2 The $500 was credited to sales revenue c All purchases of supplies were debited immediately to supplies expense However, you discover that supplies costing $400 were on hand on December 31 d Under Armour, Inc borrowed $10,000 from a local bank on October 1, Year 1 Principal and interest at 12 will be paid on September 30, Year 2 No accrual was recorded for interest Required Please determine the proper amount of net income for Year 1 for Note Amounts to be deducted should be indicated by a minus sign Unadjusted net income Adjustments b a d Adjusted net income $ 0", "question_description": "\"image During the course of your examination of the financial statements of for the year ended December 31, Year 1, you discover net income in Year 1 is $25,000 but no adjusting entries have been prepared by anyone. To prepare adjusting entries for c. you discover the following items: a. An insurance policy covering three years was purchased on January 1, Year 1, for $2,100. The entire amount was debited to Insurance expense. b. During Year 1, the company received a $500 cash advance from a customer for services to be provided in Year 2. The $500 was credited to sales revenue. c. All purchases of supplies were debited immediately to supplies expense. However, you discover that supplies costing $400 were on hand on December 31. d. Under Armour, Inc. borrowed $10,000 from a local bank on October 1, Year 1. Principal and interest at 12% will be paid on September 30, Year 2. No accrual was recorded for interest. Required: Please determine the proper amount of net income for Year 1 for Note: Amounts to be deducted should be indicated by a minus sign. Unadjusted net income Adjustments b. a d. Adjusted net income $ 0", "transcribed_text": "", "related_book": { "title": "Contemporary Auditing Real Issues And Cases", "isbn": "0538466790, 9780538466790", "edition": "8th Edition", "authors": "Michael C. Knapp", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/632d67b8674dd_16522.jpg", "uri": "\/textbooks\/contemporary-auditing-real-issues-and-cases-8th-edition-9780538466790", "see_more_uri": "" }, "free_related_book": { "isbn": "0748406530", "uri": "\/textbooks\/gis-organisations-and-people-a-socio-technical-approach-1st-edition-978-0748406531-336681", "name": "Gis Organisations And People A Socio Technical Approach", "edition": "1st Edition" }, "question_posted": "2024-06-06 09:29:21", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-is-a-run-how-are-run-charts-useful-in", "description": "What is a run? 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