31
.The following are amounts from the accounting records of Farley Company before adjusting entries have been for the year ending December 31, 2010.
Cash
|
$ 3,200
|
Accounts receivable
|
2,600
|
Supplies
|
2,100
|
Investment in Coca-Cola stock
|
10,000
|
Equipment
|
80,000
|
Accumulated depreciation
|
20,000
|
Accounts payable
|
4,800
|
Note payable 8%
|
20,000
|
Contributed capital
|
24,500
|
Retained earnings
|
11,800
|
Service revenue
|
42,600
|
Interest revenue
|
1,200
|
Supplies expense
|
5,000
|
Wage expense
|
20,000
|
Depreciation expense
|
0
|
Interest expense
|
2,000
|
The following adjustments have not been made as of December 31, 2010:
1.Wages accrued on 12/31/10 amounts to $1,100.
2.Three months' interest on the note payable has not been paid or recognized.
3.Depreciation for 2010 amounts to $3,000.
4.Supplies on hand at 12/31/10 amounts to $700.
Prepare Farley’s balance sheet at December 31, 2010 after the adjusting process is completed. Omit the heading.
32.Given below is the
Accounts Receivable
T-account. Accounts receivable on January 1 was $1,700. During the year, customers charged on account sales totaling $255,000. The current year's cash received from customers is $250,000. Post all amounts to this account and calculate the account balance.
33.Lebron Company provides you, its auditor, with the following information that pertains to its income for the year ending December 31, 2010:
Service revenue
|
$20,000
|
Salaries expenses
|
3,000
|
Rent expense
|
10,400
|
After you review the process Lebron used to derive this income statement, you discover that the company had omitted adjusting entries on December 31, 2010. The following adjusting information was omitted:
1.$500 of the $20,000 service revenue is for plumbing that will not be done until January 10, 2011.
2.Employees earned $700 of salaries for work done on December 31, 2010, but they will not be paid until January 2, 2011.
3.Depreciation for Lebron’s truck and tools amounted to $2,400 for 2010.
4.Rent expense is $800 a month. On December 31, 2010, Lebron paid $800 rent for January, 2011, which is included in the rent expense given above.
Prepare Lebron Company's income statement after you include the results of the adjusting information provided.