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Why the answer to question e is no journal entry required? picture: answer Barton Inc. completed its first year of operations on December 31. Because
Why the answer to question e is no journal entry required?
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Barton Inc. completed its first year of operations on December 31. Because this is the end of the fiscal year, the company bookkeeper prepared the following tentative statement of earnings: $ 127,000 Statement of Earnings, Current Year Rental revenue Expenses: Salaries and wages expense Maintenance expense Rent expense (on location) Utilities expense Gas and oil expense Miscellaneous expenses (items not listed elsewhere) Total expenses Net earnings $ 29,800 13,300 10,300 5,300 4,300 2,300 65,300 $ 61,700 You are an independent accountant hired by the company to audit its accounting systems and review its financial statements. In your audit, you developed additional data as follows: a. Unpaid wages for the last three days of December amounting to $440 were not recorded. b. The unpaid $530 telephone bill for December has not been recorded. c. Depreciation on rental cars, amounting to $24,300 for the current year, was not recorded. d. Interest on a $33,000, one-year, 10 percent note payable dated October 1 of the current year, was not recorded. The full amount of interest is payable on the maturity date of the note. e. The deferred rental revenue account at December 31, includes $5,300 to be earned in January of the next year. f. Maintenance expense includes $2,300, which is the cost of maintenance supplies still on hand at December 31. These supplies will be used in the next year. g. The income tax expense is $8,300. Payment of income tax will be made next year. Required: 1 For each item lal through a what adiusting entry if any do Vou recommend that Barton should record at December 312 If no entry 5 e. No journal entry requiredStep by Step Solution
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