Prepare a corrected income statement for the current year in good form, including earnings per share, assuming that 7,100 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 $58,820 and its ending balance for total assets was $65,980.

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 LO4-1, 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; $ 103,222 Income Statement Rent revenue Expenses : Salaries and wages expense Maintenance expense Rent expense Ulilities expense Gas and oil expense Miscellaneous expenses (items not listed elsewhere) Total expenses Income 24,999 18.000 8,280 3,808 2,483 1,300 S8,600 52,400 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 $670 were not recorded or paid. b. Jay estimated telephone usage at $440 for December, but nothing has been recorded or paid. c. Depreciation on rental autos, amounting to $23,900 for the current year, was not recorded. d. Interest on a $11,000, one year, 6 percent note payable dated October 1 of the current year was not recorded. The 6 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 Uneamed Rent Revenue account includes $4,800 of revenue to be eared in January of next year. 9. The income tax expense is $5,500. 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 312 2. Prepare a corrected income statement for the current year in good form, including earnings per share, assuming that 7,100 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 $58,820 and its ending balance for total assets was $65,980. Complete this question by entering your answers in the tabs below. . Required 1 Required 2 Required 3 What adjusting entry for each item (a) through () should Jay record at December 317 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction Debit Credit General Journal Salaries and wages expense 1 a. 670 Salaries and wages payable 670 2 b b. 440 Utilities expense Utilities payable 440 3 C 23,900 Depreciation expense Accumulated depreciation 23,900 4 185 d. 165 Interest expense Interest payable 165 5 e. 1,600 Maintenance expense Maintenance supplies 1,600 6 f. No Transaction Recorded 7 9 5,500 Income tax expense Income tax payable 5,500 Required Required 2 > 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 LO4-1, 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: 103,600 Income Statement Rent revenue Expenses : Salaries and wages expense Maintenance expense Rent expense Utilities expense Gas and oil expense Miscellaneous expenses (item not listed elsewhere) Tolol expenses Income 24,906 10,oo 8,260 3,800 2,400 1,300 50,600 $ 52,400 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 $670 were not recorded or paid. b. Jay estimated telephone usage at $440 for December, but nothing has been recorded or paid. c. Depreciation on rental autos, armounting to $23,900 for the current year, was not recorded. d. Interest on a $11,000, one-year, 6 percent note payable dated October 1 of the current year was not recorded. The 6 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 $4,800 of revenue to be earned in January of next year. 9. The income tax expense is $5,500. Payment of income tax will be made next year. Required: 1. What adjusting entry for each item (a) through (gshould Jay record at December 312 2. Prepare a corrected income statement for the current year in good form, including earnings per share, assuming that 7100 shares o 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 $58,820 and its ending balance for total assets was $65.980. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a corrected Income statement for the current year in good form, including earnings per share, assuming that 7,100 shares of stock are outstanding all year. (Round "Earings per share" to 2 decimal places.) JAY, INC Income Statement Operating revenue Operating expenses Total expenses 0 Other item 0 Eamnings per share 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 LO4-1, 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: $ 103,000 Income Statement Rent revenue Expenses: Salaries and wages expense Maintenance expense Rent expense Utilities expense Gas and oil expense Miscellaneous expenses (items not listed elsewhere) Total expenses Income 24,900 1 , 8,200 3,800 2,400 1,300 50,600 $ 52,400 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 $670 were not recorded or paid. b. Jay estimated telephone usage at $440 for December, but nothing has been recorded or paid. c. Depreciation on rental autos, amounting to $23.900 for the current year, was not recorded. d. Interest on a $11,000, one-year, 6 percent note payable dated October 1 of the current year was not recorded. The 6 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 $4,800 of revenue to be earned in January of next year. g. The income tax expense is $5,500. Payment of income tax will be made next year. Required: 1. What adjusting entry for each item (a) through (9) 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 7,100 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 $58,820 and its ending balance for total assets was $65,980. 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 $58,820 and its ending balance for total assets was $65,980. (Round your answer to 2 decimal places.) Total asset turnover ratio