Question
Need help with impact on net income on this one Thanks The November 30, 2021, unadjusted trial balance of Business Solutions is found in the
Need help with impact on net income on this one
Thanks
The November 30, 2021, unadjusted trial balance of Business Solutions is found in the Trial balance tab. Business Solutions had the following transactions and events in December 2021.
December 2 | Paid $1,025 cash to Hillside Mall for Business Solutions share of mall advertising costs. |
---|---|
December 3 | Paid $500 cash for minor repairs to the companys computer. |
December 4 | Received $3,950 cash from Alexs Engineering Company for the receivable from November. |
December 10 | Paid cash to Lyn Addie for six days of work at the rate of $125 per day. |
December 14 | Notified by Alexs Engineering Company that Business Solutions bid of $7,000 on a proposed project has been accepted. Alexs paid a $1,500 cash advance to Business Solutions. |
December 15 | Purchased $1,100 of computer supplies on credit from Harris Office Products. |
December 16 | Sent a reminder to Gomez Company to pay the fee for services recorded on November 8. |
December 20 | Completed a project for Liu Corporation and received $5,625 cash. |
December 22-26 | Took the week off for the holidays. |
December 28 | Received $3,000 cash from Gomez Company on its receivable. |
December 29 | Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile). |
December 31 | Paid $1,500 cash for dividends. |
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months:
- The December 31 inventory count of computer supplies shows $580 still available.
- Three months have expired since the 12-month insurance premium was paid in advance.
- As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
- The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
- The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
- Three of the four months prepaid rent has expired.
For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) (Negative amounts must be entered with a minus sign)
Show less
Unadjusted Adjusted Post-closing
Adjusted
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started