E4-14 Reporting an Adjusted Income Statement [LO2, LO4, LOG) On December 31, 2017, Dyer Inc. completed its first year of operations. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement Income Statement, 2017 Rental Revenue $ 159,000 Expenses: Salaries and Wages Expense $ 37,500 Maintenance Expense 21,000 Rent Expense 25,280 11,200 Gas and Oil Expense 4,800 Other Expenses Total Expenses 101,600 $ 57,400 Utilities Expense 1,900 Income 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 $490 were not recorded or paid. b. The $670 telephone bill for December 2017 has not been recorded or paid. c. Depreciation on rental autos, amounting to $24,800 for 2017, was not recorded. d. Interest of $1,400 was not recorded on the note payable by Dyer Inc. e The Rental revenue account includes $4.720 of revenue to be earned in January 2018, + Maintenance supplies costing $960 were used during 2017, but this has not yet been recorded. g. The income tax expense for 2017 is $12,400, but it won't actually be paid until 2018 Required: 1. Prepare adjusting Journal entry for each item () through () should be recorded at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. View transaction list Journal entry worksheet 2 3 4 5 6 7 Wages for the last three days of December amounting to $490 were not recorded or paid. ok Note: Enter debits before credits. ht Transaction General Journal Debit Credit aces Record entry Clear entry View general journal 2. Prepare, in proper form, an adjusted income statement for 2017 DYER, INC. Income Statement For the Year Ended December 31, 2017 Expenses: 0 Total expenses Income before Income tax expense 0