Required information (The following information applies to the questions displayed below.) 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: $112,500 Income Statement, 2018 Rent Revenue 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 Income 56,000 $ 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 $280 were not recorded or paid. b. The $370 telephone bill for December 2018 has not been recorded or paid. c. Depreciation of equipment amounting to $22,700 for 2018 was not recorded. d. Interest of $470 was not recorded on the notes payable by Dyer, Inc. e. The Rental Revenue account includes $3,700 of revenue to be earned in January 2019. f. Supplies costing $570 were used during 2018, but this has not yet been recorded. g. The income tax expense for 2018 is $6,700, but it won't actually be paid until 2019. Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for wages for the last three days of December amounting to $280 that were not recorded or paid. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the $370 telephone bill for December 2018 that has not been recorded or paid. Note: Enter debits before credits. Transaction General Journal Debit Credit b Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record depreciation of equipment amounting to $22,700 for 2018 previously not recorded. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record interest of $470 previously not recorded on the note payable by Dyer, Inc. Note: Enter debits before credits. Transaction General Journal Debit Credit d Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet BALL Record the adjustment to the Rent Revenue account that includes $3,700 that won't be earned until January 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit e Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record $570 of supplies used during 2018, but not yet recorded. Note: Enter debits before credits. General Journal Debit Credit Transaction f Record entry Clear entry View general journal Required: 1. Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for the 2018 income tax expense of $6,700 that won't be paid until 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit g Record entry Clear entry View general journal 2. Prepare, in proper form, an adjusted income statement for 2018. DYER, INC. Income Statement 0 0 3-a. Did the adjustments have a significant overall effect on the company's net income? Yes O No 3-b. By what dollar amount did net income change as a result of the adjustments? Change in Net Income