E4-19 (Algo) Reporting a Correct Income Statement with Earnings per Share to include the Effects of Adjusting Entries and Evaluating Total Asset Turnover as an Auditor L04-1, 4-2, 4-3 Jay, Inc., a party rental business, completed its third year of operations on December 31. Because this is the end of the annual accounting period, the company bookkeeper prepared the following tentative Income statement $100,000 Tncome Statement Rent revenue Expenses Salarion and wages expenne Maintenance expense Rent expenne Utilities expense Can and oil expande Xiscellaneous expenses item not listed elsewhere Total expenses Income 25,400 11,000 3.000 4.000 3,000 1.200 53,400 $ 54,600 You are an independent CPA hired by the company to audit the company's accounting systems and review the financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $620 were not recorded or paid. b. Jay estimated telephone usage at $300 for December, but nothing has been recorded or paid. c. Depreciation on rental autos, amounting to $23,600 for the current year, was not recorded. d. Interest on a $17,000, one-year 7 percent note payable dated October 1 of the current year was not recorded. The 7 percent Interest is payable on the maturity date of the note. e. Maintenance expense excludes $1,600, representing the cost of maintenance supplies used during the current year f. The Unearned Rent Revenue account includes $5,100 of revenue to be earned in January of next year 9. The income tax expense is $4,400. Payment of income tax will be made next year. Required: 1. What adjusting entry for each item (a) through () should Jay record at December 317 Required: 1. What adjusting entry for each item (a) through () should Jay record at December 317 2. Prepare a corrected Income statement for the current year in good form, including earnings per share, assuming that 6,000 shares of stock are outstanding all year. 3. Compute the total asset turnover ratio based on the corrected Information. Assume the beginning-of-the-year balance for Jay's total assets was $58,020 and its ending balance for total assets was $65,180. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What adjusting entry for each item (a) through () should Jay record at December 317 (If no entry is required for a tractie/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 7 3 4 5 6 Wages for the last three days of December amounting to $620 were not recorded or paid Note: Enter dobits before credits Debit Credit Transaction General Journal Next > 2 3 4 5 6 7 Jay estimated telephone usage at $300 for the current year, but nothing has been recorded or pald. Note: Enter debits before credits. Transaction General Journal Dobit Credit Record entry Clear entry View general journal Required 2 > Journal entry worksheet Journal entry worksheet Journal entry worksheet 23 4 5 7 Maintenance expense excludes $1,600, representing the cost of maintenance supplies used during the current year. Note: Enter debits before credits Dobit Credit Transaction General Journal e. View general journal Clear entry Record entry Required 2 > shees 1 2 3 4 5 6 7 The Uneamed Rental Revenue account Includes $5,100 of revenue to be earned in January next year. Note: Enter debits before credits Goneral Journal Dobit Credit Transaction 1. Record entry Clear entry View general ournal Required 2 > Knut Journal entry worksheet 1 2 3 4 5 6 7 The Income tax expense is $4,400. Payment of income tax will be made next year. Note: Enter debits before credits Dobit General Journal Transaction Credit View general Journal Record entry Ciear entry Required 23 Required 1 Required 2 Required 3 Prepare a corrected Income statement for the current year in good form, including earnings per shore, asuming that 6,000 shares of stock are outstanding all year. (Round "Earnings per share to 2 decimal places) JAY. INO Income Statement Operating revenue: Operating expenses 0 Total expenses Other Item: 0 Earnings per share date of the note. Payable on the e. Maintenance expense excludes $1,600, representing the cost of maintenance supplles used during the current year. f. The Unearned Rent Revenue account Includes $5,100 of revenue to be earned in January of next year. g. The Income tax expense is $4,400. Payment of Income tax will be made next year. Required: 1. What adjusting entry for each item (a) through() should Jay record at December 31? 2. Prepare a corrected income statement for the current year in good form, including earnings per share, assuming that 6,000 of stock are outstanding all year. 3. Compute the total asset turnover ratio based on the corrected information. Assume the beginning-of-the-year balance foru assets was $58,020 and its ending balance for total assets was $65.180. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the total asset turnover ratio based on the corrected Information. Assume the beginning-of-the-year balance for Jay's total assets was $58,020 and its ending balance for total assets was 565,180. (Round your answer to 2 decimal places) Total of turnover ratio Required 2