Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this

image text in transcribed

Required information [The following information applies to the questions displayed below.] Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: $110,000 Income Statement, 2021 Rent Revenue Expenses: Salaries and Wages Expense Repairs and Maintenance Expense Rent Expense Utilities Expense Travel Expense Total Expenses Income $27,700 12,200 8,200 3,200 2,200 53,500 $ 56,500 You are an independent CPA hired by the company to audit the firm's 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 $230 were not recorded or paid. b. The $320 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $22,200 for 2021 was not recorded. d. Interest of $420 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $3,200 of revenue to be earned in January 2022. f. Supplies costing $520 were used during 2021, but this has not yet been recorded. g. The income tax expense for 2021 is $6,200, but it won't actually be paid until 2022. 2. Prepare, in proper form, an adjusted income statement for 2021. DYER, INCORPORATED Income Statement For the Year Ended December 31, 2021 Revenues Rent Revenue Total Revenues 0 Expenses Salaries and Wages Expense 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Financial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0136162185, 9780136162186

More Books

Students also viewed these Accounting questions

Question

What is a wiki? Why would an organization want to implement a wiki?

Answered: 1 week ago