Jay, Incorporated, 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:

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$.$ Salaries and wages for the last three days of December amounting to $$670$ were not recorded or paid.

b$.$ Jay estimated telephone usage at $$310$ for December, but nothing has been recorded or paid.

c$.$ Depreciation on rental autos, amounting to $$22,500$ for the current year, was not recorded.

d$.$ Interest on a $$10,000,$ one$-$year, $8$ percent note payable dated October $1$ of the current year was not recorded. The

$8$ percent interest is payable on the maturity date of the note.

e$.$ Maintenance expense excludes $$2,500,$ representing the cost of maintenance supplies used during the current

year.

f$.$ The Unearned Rent Revenue account includes $$4,700$ of revenue to be earned in January of next year.

g$.$ The income tax expense is $$5,000.$ Payment of income tax will be made next year.

Required:

What adjusting entry for each item $($a$)$ through $(g)$ should Jay record at December $31?$

Prepare a corrected income statement for the current year including earnings per share. Assume that $7,400$ shares

of stock are outstanding all year.

Compute the total asset turnover ratio based on the corrected information. Assume the beginning$-$of$-$the$-$year

balance for Jay's total assets was $$58,220$ and its ending balance for total assets was $$65,380.$

Complete this question by entering your answers in the tabs below.

What adjusting entry for each item $(a)$ through $(g)$ should Jay record at December $31?$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first

account field.

Journal entry worksheet

Salaries and wages for the last three days of December

amounting to $$670$ were not recorded or paid.

Note: Enter debits before credits.