Question

Need help on the Red X's shown here on the "Impact on income" and any other "answer is not complete

Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Show less Impact on net income $ (1,180) (2,460) ► (1,400) Adjusted Account affecting the: Adjusting entry related to: Income Statement Balance Sheet Computer supplies a) Computer supplies Computer supplies expense b) Prepaid insurance Insurance expense Prepaid insurance c) Accrued wages Wages expense Wages payable Depreciation expense - Accumulated depreciation - d) Depreciation - Computer equipment Computer equipment Computer equipment Depreciation expense Accumulated depreciation - e) Depreciation - Office equipment Office equipment Office equipment f) Prepaid rent Rent expense Prepaid rent Total impact on income due to adjustments Net income before adjustments Net income after adjustments Had the adjustments not been prepared, income would have been overstated by (1,490) (680) $ (4,725) (11,935) 18,893 X 6,958 171.5% $

Answer 1

				Account affecting the	Impact on net income
Adjusting entry related to				Income statement	Balance sheet
a) Computer supplies				Computer supplies expense			Computer supplies			-3670
b) Prepaid insurance				Insurance expense			Prepaid insurance			-820
c) Accrued wages				Wages expense			Wages payable			-560
d) Depreciation-Computer equipment				Depreciation expense-Computer equipment			Accumulated depreciation-Computer equipment			-1490
e) Depreciation-Office equipment				Depreciation expense-Office equipment			Accumulated depreciation-Office equipment			-680
f) Prepaid rent				Rent expense			Prepaid rent			-4725
Total impact on income due to adjustments										-11945
Net income before adjustments			(Note:1)							30438
Net income after adjustments										18493
Had the adjustments not been prepared,income would have been overstated by										11945

Note:1
Net income before adjustments
Use unadjusted trial balance
					$	$
Computer service revenue				A		40200
Less: Expenses
Wages expense		(4340-560)			3780
Advertising expense					3000
Mileage expense					1072
Miscellaneous expense					400
Repairs expense-Computer					1510
Total expenses				B		9762
Net income				A-B		30438

		Balance sheet
				$	$
		Assets
Current assets:
Cash				48418
Accounts receivable				5000
Computer supplies				1180
Prepaid insurance				2460
Prepaid rent				1575
Total current assets					58633
Plant assets:
Office equipment				13600
Accumulated depreciation-Office equipment				680
Office equipment,net					12920
Computer equipment				23840
Accumulated depreciation-Computer equipment				1490
Computer equipment,net					22350
Total plant assets					35270
Total assets					93903
Liabilities:
Accounts payable				1850
Wages payable				560
Unearned computer service revenue				1700
Total liabilities					4110

41107 Total liabilities Equity: Common stock Retained earnings Total equity Total liabilities and equity 80500 9293 89793 93903 Potter computing Statement of retained earnings For three months ended December 31, 2019 $ Retained earnings, October 1,2019 Add:Net income (Refer income statement) 18493 Less:Dividends 9200 Retained earnings, December 31, 2019 9293 0 Potter computing Income statement For three months ended December 31, 2019 $ $ Revenues: Computer service revenue 40200 Total revenues Expenses: 40200

1510 3000 4340 1072 820 Expenses: Repairs expense-Computer Advertising expense Wages expense Mileage expense Insurance expense Depreciation expense-Office equipment Depreciation expense-Computer equipment Computer supplies expense Rent expense Miscellaneous expense Total expenses Net income 680 1490 3670 4725 400 21707 18493