Question

Required information (The following information applies to the questions displayed below.) Part 2 of 3 Dyer, Inc., completed its first year of operations on December 31, 2018. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: 0.8 points $ 109,500 - eBook Income Statement, 2018 Rent Revenue Expenses : Salaries and Wages Expense $27,600 Repairs and Maintenance Expense 12,100 Rent Expense 8,100 Utilities Expense 3,100 Travel Expense 2,100 Total Expenses Income ! 53,000 $ 56,500 You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: References a. Wages for the last three days of December amounting to $220 were not recorded or paid. b. The $310 telephone bill for December 2018 has not been recorded or paid. c. Depreciation of equipment amounting to $22.100 for 2018 was not recorded. d. Interest of $410 was not recorded on the notes payable by Dyer, Inc. e. The Rental Revenue account includes $3,100 of revenue to be earned in January 2019 1. Supplies costing $510 were used during 2018, but this has not yet been recorded. g. The income tax expense for 2018 is $6,100, but it won't actually be paid until 2019. 2. Prepare, in proper form, an adjusted income statement for 2018.

Answer 1

Answer

DYER, INC.
Income Statement
for the year ended 31st December 2018
	$
Revenues
Rent Revenue	106,400
Total Revenues	106,400
Expense
Salaries & Wages Expense	27,820
Depreciation Expense	22,100
Repair & Maintenance Expense	12,100
Rent Expense	8,100
Utilities Expense	3,410
Travel Expense	2,100
Supplies Expense	510
Interest Expense	410
Income Tax Expense	6,100
Total Expense	82,650
Net Income	23,750

Working Notes:

S. No.	Particulars	$
1	Rent Revenue	109,500
	Less: Unearned	3,100
	Revenue for 2018	106,400
2	Salary and wages expense	27,600
	Add: Related to December 2018	220
	Total Salary and wages expense	27,820
3	Utilities Expense	3,100
	Add: Telephone bill for December 2018	310
	Total Utilities Expense	3,410

Note -   All other points mentioned in additional information have been incorporated in the adjusted income statements.