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: points $118,500 Income Statement, 2018 Rent Revenue Expenses: Salaries and Wages Expense $ 29,400 Repairs and Maintenance Expense 13,900 Rent Expense 9,900 Utilities Expense 4,900 Travel Expense 3,900 Total Expenses Income eBook 62,000 $ 56,500 Hint 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 $400 were not recorded or paid. b. The $490 telephone bill for December 2018 has not been recorded or paid. c. Depreciation of equipment amounting to $23,900 for 2018 was not recorded. d. Interest of $590 was not recorded on the notes payable by Dyer, Inc. e. The Rental Revenue account includes $4,900 of revenue to be earned in January 2019. f. Supplies costing $690 were used during 2018, but this has not yet been recorded. g. The income tax expense for 2018 is $7,900, but it won't actually be paid until 2019. 2. Prepare, in proper form, an adjusted income statement for 2018. DYER, INC. Income Statement Inca

Answer 1

Income statement

Rent revenue (118500-4900)		113600
Expense
Salaries and wages expense (29400+400)	29800
repairs and maintenance expense	13900
Rent expense	9900
Utilities expense	4900
Travel expense	3900
Telephone expense	490
Depreciation expense	23900
Interest expense	590
Supplies expense	690
Total expense		88070
Income before tax		25530
Income tax		7900
Net income		17630