The accounts of United Digital Services Company prior to the year-end adjustments follow: Adjusting data at the
Question:
Adjusting data at the end of the year include the following:
a. Unearned service revenue that has been earned, $1,650
b. Accrued service revenue, $32,200
c. Supplies used in operations, $3,100
d. Accrued salary expense, $3,500
e. Prepaid insurance expired, $1,500
f. Depreciation expense-building, $2,600
Megan Hodge, the principal stockholder, has received an offer to sell United Digital Services Company. She needs to know the following information within one hour:
a. Net income for the year covered by these data
b. Total assets
c. Total liabilities
d. Total stockholders' equity
e. Proof that Total assets = Total liabilities + Total stockholders' equity after all items are updated
Requirement
Without opening any accounts, making any journal entries, or using a work sheet, provide Ms. Hodge with the requested information. The business is not subject to income tax.
Step by Step Answer:
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz