Jay, Inc., a party rental business, completed its first 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:

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:

Wages for the last three days of December amounting to $800 were not recorded or paid.

Jay estimated telephone usage at $420 for December, but nothing has been recorded or paid.

Depreciation on rental autos, amounting to $22,800 for the current year, was not recorded.

Interest on a $14,000, one-year, 12 percent note payable dated October 1 of the current year was not recorded. The 12 percent interest is payable on the maturity date of the note.

Maintenance expense excludes $2,600, representing the cost of maintenance supplies used during the current year.

The Unearned Rental Revenue account includes $5,400 of revenue to be earned in January of next year.

The income tax expense is $5,900. Payment of income tax will be made next year.

Required:

1. What adjusting entry for each item (a) through (g) should Jay record at December 31? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answer to whole dollars.)

2. Prepare a corrected income statement for the current year in good form, including earnings per share, assuming that 6,800 shares of stock are outstanding all year. (Round "Earnings per share" to 2 decimal places. Round final answer to whole dollars.)

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 $59,020 and its ending balance for total assets was $66,180. (Round your answer to 2 decimal places.)

Income Statement $ 110,000 Rental revenue Expenses Salaries and wages expense Maintenance expense Rent expense Utilities expense Gas and oil expense Miscellaneous expenses (items not listed elsewhere) Total expenses 26,200 11,100 7,500 3,500 2,100 1,100 Income $ 58,500