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Dyer, Inc., completed its first year of operations on December 31, 2018. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement:

Income Statement, 2018
Rent Revenue					$	112,500
Expenses:
Salaries and Wages Expense	$	28,200
Repairs and Maintenance Expense		12,700
Rent Expense		8,700
Utilities Expense		3,700
Travel Expense		2,700
Total Expenses						56,000
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:

1. Wages for the last three days of December amounting to $280 were not recorded or paid.
2. The $370 telephone bill for December 2018 has not been recorded or paid.
3. Depreciation of equipment amounting to $22,700 for 2018 was not recorded.
4. Interest of $470 was not recorded on the notes payable by Dyer, Inc.
5. The Rental Revenue account includes $3,700 of revenue to be earned in January 2019.
6. Supplies costing $570 were used during 2018, but this has not yet been recorded.
7. The income tax expense for 2018 is $6,700, but it wont actually be paid until 2019.

2. Prepare, in proper form, an adjusted income statement for 2018

3.

1. 3-b. By what dollar amount did net income change as a result of the adjustments?

2. Prepare, in proper form, an adjusted income statement for 2018. DYER, INC. Income Statement