For each of the above transactions, record the adjustment that is required on December $31$ in the tabular summary from part $($a$).$

$($Hint: Use the account Service Revenue for item $3$ and Repairs and Maintenance Expense for item $4.)($If a transaction results in a

decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular

Asset, Liability or Equity item that was reduced.$)$Chegg For each of the above transactions, record the adjustment that is required on December $31$ in the tabular summary from part $($a$).$

$($Hint: Use the account Service Revenue for item $3$ and Repairs and Maintenance Expense for item $4.)($If a transaction results in a

decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular

Asset, Liability or Equity item that was reduced.$)$

Stockholders' Equity

Retained Earnings Record each of the above transactions in the tabular summary that follows. $($If a transaction results in a decrease in Assets, Liabilities

or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular Asset, Liability or Equity item

that was reduced.$)$

June $1$

Aug. $31$

Sept. $4$

Nov. $30$

Dec. $5$Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December $31,2022.$

Purchased a $1-$year insurance policy on June $1$ for $$2,232$ cash.

Paid $$8,060$ on August $31$ for $5$ months' rent in advance.

On September $4,$ received $$4,464$ cash in advance from a corporation to sponsor a game each month for a total of $9$ months

for the most improved students at a local school.

Signed a contract for cleaning services starting December $1$ for $$1,240$ per month. Paid for the first $2$ months on November

$($Hint: Use the account Prepaid Cleaning to record prepayments.$)$

On December $5,$ received $$1,860$ in advance from a gaming club. Determined that on December $31,$$$600$ of these games had

not yet been played.

Step $1$

Solution :

"Net income" would appear on the income statement of both

a merchandising company and a service company.

Explanation:

This is because sales revenue, cost of goods sold and

gross profit would appear on income statement of

merchandising company. These would not appear for

service company as there will be service revenue and

no cost of goods sold.

Answer

The option $"$A$.$ Net income $"$ is the correct answer.

Was this solution helpful?

Was this solution helpful?For each of the above transactions, record the adjustment that is required on December $31$ in the tabular summary from part $($a$).$

$($Hint: Use the account Service Revenue for item $3$ and Repairs and Maintenance Expense for item $4.)($If a transaction results in a

decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular

Asset, Liability or Equity item that was reduced.$)$

Dec. $31$

Dec. $31$

Dec. $31$

Dec. $31$

Dec. $31$