Question :
42) Cruits, Inc. prepared the following income statement before adjustments:
Cruits, : 1253180
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.
