Supplies Deferred Revenue Salaries and Wages Payable Income Tax Payable Interest Payable Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expense Interest Expense Income Tax Expense Totals Adjustment (1) (2) (3) (4) (5) 720 Supplies Deferred Revenue 36,700 3,000 Balance sheet account Salaries and Wages Payable Income Tax Payable Interest Payable 0 0 of this amount, $3,600 was received for December lessons and $560 for January lessons. Employees were paid $1,600 for 10 days of work 0 through December 28. They have not yet been paid for work on December 29 and 30. $4,160 The company has paid last year's income tax but not this year's tax. The company has not paid the $100 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. 0 12,000 1,000 Based on count, only $260 of supplies still exist. 3,600 $ 72,920 $72,920 CP4-4 (Algo) Part 2 2. Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time 52,160 they are provided, but some customers pay in advance. Employees worked through December 30 but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $100 of interest owed on its notes payable for the current period. The company has an average tax rate of 30%. Related income statement account Supplies Expense Service Revenue Salaries and Wages Expense Income Tax Expense Interest Expense $ Amount 460 3.600 320 100

CP4.4 (Algo) Port 2 2. Name the five pais of balance sheet and income statement accounts that require adjustment and indicate the amount of odjustment for each pair. CP4.4 (Algo) Port 2 2. Name the five pais of balance sheet and income statement accounts that require adjustment and indicate the amount of odjustment for each pair