Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company

image text in transcribedimage text in transcribedimage text in transcribed

Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Rent Revenue Expenses: Income Statement, 2021 Salaries and Wages Expense Repairs and Maintenance Expense Rent Expense Utilities Expense Travel Expense Total Expenses Income $109,000 $27,500 12,000 8,000 3,000 2,000 52,500 $ 56,500 You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $210 were not recorded or paid. b. The $300 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $22,000 for 2021 was not recorded. d. Interest of $400 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $3,000 of revenue to be earned in January 2022. f Supplies costing $500 were used during 2021, but this has not yet been recorded. g. The income tax expense for 2021 is $6,000, but it won't actually be paid until 2022. Record the entry for wages for the last three days of December amounting to $210 that were not recorded or paid. 2 Record the $300 telephone bill for December 2021 that has not been recorded or paid. 3 Record depreciation of equipment amounting to $22,000 for 2021 previously not recorded. 4 Record interest of $400 previously not recorded on the note payable by Dyer, Inc. 5 Record the adjustment to the Rent Revenue account that includes $3,000 that won't be earned until January 2022. View transaction list Record depreciation of equipment amounting to $22,000 for 2021 previously not recorded. 4 Record interest of $400 previously not recorded on the note payable by Dyer, Inc. 5 Record the adjustment to the Rent Revenue account that includes $3,000 that won't be earned until January 2022. 6 Record $500 of supplies used during 2021, but not yet recorded. 7 Record the entry for the 2021 income tax expense of $6,000 that won't be paid until 2022. nting to Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions