Prepare, in proper form, an adjusted income statement for 2015.

Dyer, Inc., completed its first year of operations on December 31, 2015. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement:

Income Statement, 2015

Rent Revenue

$

111,500

Expenses:

Salaries and Wages Expense

$

28,000

Repairs and Maintenance Expense

12,500

Rent Expense

8,500

Utilities Expense

3,500

Travel Expense

2,500

Total Expenses

55,000

Income

$

56,500

You are an independent CPA hired by the company to audit the firms accounting systems and financial statements. In your audit, you developed additional data as follows:

a.	Wages for the last three days of December amounting to $260 were not recorded or paid.
b.	The $350 telephone bill for December 2015 has not been recorded or paid.
c.	Depreciation of equipment amounting to $22,500 for 2015, was not recorded.
d.	Interest of $450 was not recorded on the note payable by Dyer, Inc.
e.	The Rental Revenue account includes $3,500 of revenue to be earned in January 2016.
f.	Supplies costing $550 were used during 2015, but this has not yet been recorded.
g.	The income tax expense for 2015 is $6,500, but it wont actually be paid until 2016.

Prepare, in proper form, an adjusted income statement for 2015.

DYER, INC.

Income Statement
	0
	0