I am to correct in Income Statement with current revenues of $5500, wage expense
ID: 2372439 • Letter: I
Question
I am to correct in Income Statement with current revenues of $5500, wage expense $2300, supplies expense $1200, and utilities expense $600. I must correct my income statement by making the following adjustments...Insurance expired at $400, supplies expense includes $200 of supplies still on hand, depreciation on equipment of $150 was omitted, accrued but unpaid wages of $300 were not included and services provided but unrecorded totaled $500. My original balance before adjustments is $1400. Could someone help me with adjusting my income statement please?Explanation / Answer
I am to correct in Income Statement with current revenues of $5500, wage expense $2300, supplies expense $1200, and utilities expense $600. I must correct my income statement by making the following adjustments...
Insurance expired at $400,
Debit: Insurance Expense 400
Credit: Prepaid Insurance 400
supplies expense includes $200 of supplies still on hand.
Debit: Supplies 200
Credit: Supplies Expense 200
depreciation on equipment of $150 was omitted,
Debit: Depreciation expense 150
Credit: Accumulated Depreciation 150
accrued but unpaid wages of $300 were not included
Debit: Wages Expense 300
Credit: Wages Payable 300
and services provided but unrecorded totaled $500.
Debit: Accounts Payable 500
Credit: Service Revenue 500
My original balance before adjustments is $1400. Could someone help me with adjusting my income statement please?
These adjustments will increase revenue by 500 and also increase expenses by 650, which together will decreases income by 150