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E4-10 Determining Adjusted Income Statement Account Balances [LO 4-1, LO 4-2] Partial comparative Income statements are presented below for Commonplace Corporation COMMONPLACE CORPORATION (Partial) Income

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E4-10 Determining Adjusted Income Statement Account Balances [LO 4-1, LO 4-2] Partial comparative Income statements are presented below for Commonplace Corporation COMMONPLACE CORPORATION (Partial) Income Statements For the Years Ended December 31 2018 Service Revenue $705,000 utilities Expense 20,000 Salaries and Wages Expense 405,000 Rent, Insurance, and Supplies Expense 163,000 Depreciation and Amortization Expense 17.000 Income before Income Tax Expense $100,000 2017 $730,000 24,000 460,000 142.000 4,000 $100,000 The company's manager provides the following additional information: a. The company received a bill for $2.400 of electricity and other utility services used in December 2018, but recorded it only when paid in January 2019. b. A customer's $15,000 payment was received and included as service revenue on January 2, 2018, even though it was for services performed in December 2017 c. The company ordered $5,000 of supplies in December 2018, but only recorded them when they were received, used, and paid for In January 2019 d. The company did not record December 2016 salaries of $30,000 until the employees were paid on January 2, 2017. Salaries for December 2017 and December 2018 were recorded in the proper years. c. The company ordered $5,000 of supplies in December 2018, but only recorded them when they were received, used, and paid for in January 2019. d. The company did not record December 2016 salaries of $30,000 until the employees were paid on January 2, 2017. Salaries for December 2017 and December 2018 were recorded in the proper years. Required: Using the above information, revise the comparative Income statement to report the proper amounts for each year. (Assume all other transactions and events, such as income taxes, have been properly recorded but are just not displayed on the partial income statements.) 2017 COMMONPLACE CORPORATION (Partial) Income Statement At December 31 2018 Service Revenue Utilities Expense Salaries and Wages Expense Rent Insurance and Supplies Expense Depreciation and Amortization Expense Income before Income Tax Expense

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