Please be clear about what the answer is only answer if you’re positive! x Compa
ID: 2598121 • Letter: P
Question
Please be clear about what the answer is only answer if you’re positive!x Company prepares monthly finandial statements. The following transactions occurred during January: 1. On January 1, a one-year store rental lease was signed for a total of $33,600, and rent for the first 4 months was paid in advance. 2. On January 1, equipment was purchased for $60,000 with a downpayment of $6,000 a note for the remainder. The note along with annual interest of 8% was due in a year. The estimated life of the equipment is 10 years with a salvage value of $4,000 3. Daily wages are $1,900 and are paid every Friday. The last day in January was a Monday. 8. The required adjusting entries on January 31 decreased net income by a total of Submit Answer Tries 0/3 9. The required adjusting entries on January 31 decreased total assets by a total of Submit Answer Tries 0/3
Explanation / Answer
1) 1-Jan prepaid expense 33,600 rent expensed 33600*1/4= 8400 balance in prepaid rent account in jan 31 25,200 2) Equipment 60,000 Depreciation expense(60000-4000)/10 5600 Equipment 54,400 interest expense (54000*8%*1/12) 360 3) Wage expense (1900*1/5) 380 8) Net income decrease by total of (8400 + 5600+360+380)= 14740 9) total assets decreased by 14000 (8400+5600)=