42) Cruits, Inc. prepared the following income statement
before
adjustments:
Cruits, Inc.
Income Statement
For the Month Ended September 30, 2011
Sales revenue$30,000
Expenses
Rent $5,000
Utilities2,000
Salaries8,000
Depreciation3,000
Total expenses$18,000
Net income (loss)$12,000
Required:
Determine the net income or loss
after
adjustment given the following additional information for the month of September:
a. Salaries earned but unrecorded and unpaid equals $1,000.
b. Depreciation for the month should be an additional $2,000.
c. Customer work completed, but not yet billed or collected equals $4,000.
43) Growing Green Care prepared the following income statement
before
adjustments:
Growing Green Care
Income Statement
For the Month Ended September 30, 2011
Sales revenue$50,000
Expenses
Rent $12,000
Utilities3,000
Salaries18,000
Depreciation5,000
Total expenses38,000
Net income (loss)$12,000
Required:
Determine the net income or loss
after
adjustment given the following additional information for the month of September:
a. Salaries earned but unrecorded and unpaid equals $5,000.
b. Depreciation for the month should be an additional $3,000.
c. Customer work completed, but not yet billed or collected equals $5,000.
44) Cal’s Lawn Care prepared the following income statement
before
adjustments:
Cal's Lawn Care
Income Statement
For the Month Ended September 30, 2011
Revenues
Sales $80,000
Interest5,000
Total revenues$85,000
Expenses
Salaries18,000
Rent6,000
Supplies200
Depreciation5,000
Total expenses29,200
Net income (loss)$55,800
Required:
Determine the profit or loss
after
adjustment given the following additional information for the month of September:
a. Salaries earned but unrecorded and unpaid equals $8,000.
b. Depreciation for the month should be an additional $2,000.
c. Additional supplies used up equals $100.
d. Unearned revenue earned equals $1,000.
45) An inexperienced accountant made the following adjustments to the accounting system of Airata, Inc. The adjustments were made based on the information below the accounting equation worksheet.
|
Assets
|
Liabilities
|
Shareholders’ equity
|
|
|
|
CC
|
Retained earnings
|
a.
|
6,000 Cash
|
|
|
6,000 Revenue
|
b.
|
100 Supplies
|
|
|
(700) Supplies expense
|
c.
|
|
|
|
(10,000) Equipment expense
10,000 Accumulated depreciation
|
d.
|
(4,800) Cash
|
|
|
(4,800) Interest expense
|
e.
|
(10,000) Cash
|
|
|
(10,000) Salaries expense
|
|
|
|
|
|
a.Unearned revenue has a December 31 balance of $10,000
before
adjustment. Forty percent of the unearned revenue has been earned by the end of the year.
b.Before adjustment, the supplies account equals $800. Only $100 of the supplies remain as of the end of the year.
c.The equipment is depreciated by $10,000 per year.
d.Interest accrues on an $80,000, 12%, 6-month note payable that has been outstanding for the past three months.
e.Salaries earned by employees but not yet paid are $10,000.
Required:
Cross out any incorrect account titles or dollar amounts in the worksheet shown above. Write in the correct account titles and dollar amounts where needed.