Question
The income statement of Larkspur, Inc. for the month of July shows net income of $2,200 based on Service Revenue $6,100, Salaries and Wages Expense
The income statement of Larkspur, Inc. for the month of July shows net income of $2,200 based on Service Revenue $6,100, Salaries and Wages Expense $2,500, Supplies Expense $1,000, and Utilities Expense $400. In reviewing the statement, you discover the following.
| 1. | Insurance expired during July of $500 was omitted. | |
| 2. | Supplies expense includes $250 of supplies that are still on hand at July 31. | |
| 3. | Depreciation on equipment of $350 was omitted. | |
| 4. | Accrued but unpaid salaries and wages at July 31 of $500 were not included. | |
| 5. | Services performed but unrecorded totaled $600. |
Prepare a correct income statement for July 2020.
| Larkspur, Inc. Income Statement For the Year Ended July 31, 2020For the Month Ended July 31, 2020July 31, 2020 | ||
| DrawingsExpensesInvestmentsNet Income / (Loss)Owners Capital, July 1Owners Capital, July 31RevenuesTotal ExpensesTotal Revenues | ||
| $ | ||
| DrawingsExpensesInvestmentsNet Income / (Loss)Owners Capital, July 1Owners Capital, July 31RevenuesTotal ExpensesTotal Revenues | ||
| $ | ||
| Drawings Expenses Investments Net Income / (Loss) Owners Capital, July 1 Owners Capital, July 31 Revenues Total Expenses Total Revenues | ||
| DrawingsExpensesInvestmentsNet Income / (Loss)Owners Capital, July 1Owners Capital, July 31RevenuesTotal ExpensesTotal Revenues | $ | |
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Automotive Audits Principles And Practices
Authors: D. H. Stamatis
1st Edition
0367696592, 978-0367696597
