Question

7.50 points a. Rental commissions of $610 had been eamed in August butl had not yet been seceived trom or biled to building owners o erest on the note paty atie is to be pad on May 31 and November 30sugunsit has not been accrues -that is, t has not yet been recordesd (The Interest Payabe of $80 on the balance sheet s the amount of the accuedy aa 10% d. Wages of $370 for the last wweek of August have not been recorded e. The Rent Expense of $1,350 represents nent for August, September, and October, which was pad early in August t. Interest of $390 has been eamed on notes recelvabie but has not yet been received g. Late in August the board otdeectors met and dedared acash didend of $3.900, partie September so once ded ed heddend nautinofmeenna Required: statement and balance siheet for Big ue Rental Corp, make the appropriate auntmentvomecions to the statements, and enter te conect amount in the Final coumn (int Use the tive questiom af s betereen net income and the balance sheet?) Income Statement Enter amounts in the AdjustmentsComections eolumes as positive numbers. Net income Adjustomentsu Corectons Pease use the sumbers tron me

Answer 1

	Account Title	Debit	Credit
a.	Commission receivable	610
	Commission revenue		610
b.	Supplies expense	470
	Supplies		470
c.	Interest expense	80
	Interest payable		80
d.	Wages expense	370
	Wages payable		370
e.	Prepaid rent	900
	Rent expense		900
	(1350/3*2)
f.	Interest receivable	390
	Interest Income		390
g.	Retained earnings	3900
	Dividends payable		3900

BIG BLUE RENTAL CORP
Income Statement
Aug-16
		Adj./Corrections
	Preliminary	Debit	Credit	Final
Commission revenue	9200		610	9810
Interest revenue	2800		390	3190
Total revenues	12000		1000	13000
Rent expense	1350		900	450
Wages expense	2490	370		2860
Supplies expense		470		470
Interest expense		80		80
Total expenses	3840	920	900	3860
Net Income	8160	920	1900	9140

BIG BLUE RENTAL CORP
Balance Sheet as at
Aug. 31, 2016
		Adj./Corrections
	Preliminary	Debit	Credit	Final
Assets
Cash	1350			1350
Notes Receivable	26500			26500
Commissions receivable		610		610
Interest receivable		390		390
Prepaid Rent		900		900
Supplies	2400		470	1930
Total Assets	30250	1900	470	31680
Liabilities & Stockholders' Equity
Accounts payable	430			430
Notes payable	4800			4800
Interest payable	80		80	160
Wages payable			370	370
Dividends payable			3900	3900
Total liabilities	5310	0	4350	9660
Paid-in-capital	4800			4800
Retained Earnings
Balance,August 1	11980			11980
Net Income	8160	920	1900	9140
Dividends		3900		3900
Balance,August 31	20140			17220
Total Stockholders' Equity	24940	0	0	22020
Total Liabilities & Stockholders' Equity	30250	0	4350	31680