Question

Abdullah sees that two people who major in information technology Quizlet

CP4-4 Identifying and Preparing Adjusting Journal Entries (LO 4-1, LO 4-2, LO 4-3, LO 4-6) (The following information applies to the questions displayed below) Golf Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. Credit Account Names Cash Supplies Deferred Revenue Debit $31,800 580 $ 2,390 Salaries and Wages payable 0 Income Tax Payable 0 Interest Payable 0 Notes Payable (long-term) Common Stock 15,000 1,000 Purther Information As reported on December 31 bank statement. Based on count, only $190 of supplies still exist. of this amount, $1,900 was received for December lessons and $490 for January lessons. Employees were paid $2,100 for 10 days of work through December 28. They have not yet been paid for work on December 29 and 30. The company has paid last year's Income tax but not this year's tax. The company has not paid the $125 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time they are provided, but some customers pay in advance. Employees worked through December 30, but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $125 of interest owed on its notes payable for the current period. The company has an average tax rate of 200. Retained Earnings Service Revenue 2,900 49,390 Salaries and Wages Expense 36,000 2,300 Supplies Expense Interest Expense Income Tax Expense Totals $70,680 $70,680

Answer 1

4-a

Income Statement
Revenues
Service Revenue	$         51,290		=49390+1900
Total Revenues		$              51,290
Expenses
Salaries and Wages expense	$         36,420		=36000+210*2
Supplies Expense	$            2,690		=2300+580-190
Interest Expense	$               125
Total Expenses		$              39,235
Income before tax		$              12,055
Income tax expense @20%		$                2,411
Net Income		$                9,644

4-b
Net Income decreases by $1446 i.e. $11090 - $9644

Unadjusted Income statement

Income Statement
Revenues
Service Revenue	$         49,390
Total Revenues		$              49,390
Expenses
Salaries and Wages expense	$         36,000
Supplies Expense	$            2,300
Interest Expense	$                   -
Income tax expense	$                   -
Total Expenses		$              38,300
Net Income		$              11,090