Exercise H Rubino Company reported net income of USD 100,000 for the current year. Examination of...
Exercise H Rubino Company reported net income of USD 100,000 for the current year. Examination of the work sheet and supporting data indicates that the following items were ignored: • Accrued salaries were USD 6,000 at December 31. • Depreciation on equipment acquired on July 1 amounted to USD 4,000. Based on this information, (a) what adjusting journal entries should have been made at December 31, and (b) what is the correct net income?
Homework Answers
Answer is as follows:
a) Adjusting Entries:
1. Salaries A/C Dr USD 6000
To Accrued Salaries A/C USD 6000
2. Depreciation - Equipment A/C Dr USD 4000
To Accumulated Depreciation - Equipment A/C USD 4000
3. Profit & Loss A/C Dr USD 10000
To Salaries A/C USD 6000
To Depreciation A/C USD 4000
b) Correct net income:
Reported net income = USD 100000
(-) Salaries = (USD 6000)
(-) Depreciation = (USD 4000)
Correct net income = USD 90000
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Exercise H Rubino Company reported net income of USD 100,000 for
the current year. Examination of...
Rubino Company reported net income of USD 100,000 for the current year. Examination of the work...
Rubino Company reported net income of USD 100,000 for the current year. Examination of the work sheet and supporting data indicates that the following items were ignored: • Accrued salaries were USD 6,000 at December 31. • Depreciation on equipment acquired on July 1 amounted to USD 4,000. Based on this information, (a) what is the correct net income? Show Process (Formula)
* wicy Roselawn Company reported net sales of $90,000 and net income of $18,000 for the...
* wicy Roselawn Company reported net sales of $90,000 and net income of $18,000 for the year ended December 31, 2019. The company reported net sales of $100,000 and net income of $20,000 for the year ended December 31, 2020. Total assets amounted to $200,000 at December 31, 2019 and $246,000 at December 31, 2020. The company's profit margin for the year ended December 31, 2020 (rounded to the nearest decimal point) is: 9.0% 21.1% 20.0% 125.5%
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* wicy Roselawn Company reported net sales of $90,000 and net income of $18,000 for the year ended December 31, 2019. The company reported net sales of $100,000 and net income of $20,000 for the year ended December 31, 2020. Total assets amounted to $200,000 at December 31, 2019 and $246,000 at December 31, 2020. The company's profit margin for the year ended December 31, 2020 (rounded to the nearest decimal point) is: 9.0% 21.1% 20.0% 125.5%
please read and complete all transactions in the general
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unadjusted, adjusted, and post closing as well.
The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Credits Dobits $ 41,500 25,700 110,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable (due in 2 years) Common Stock Retained Earnings Totals 15.300 30,000 100,000 32,700 $178,000 $178,000 The following is a summary of the transactions for...
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On December 31. 2015. Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement, prepared on this incorrect basis, reported income before income tax of $28,500. The balance sheet (before the effect of income taxes) reflected total assets, $87,000: total liabilities, $38,500: and stockholders' equity, $48,500. The data for the four adjusting journal entries follow b. Salaries and Wages amounting to $16.700 for the last three days...
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