Question

prepare an adjusted income statement

$40,000 Income Statement For the Month Ended June 30 Revenues Service Revenue Expenses Salaries and Wages Expense Advertising Expense Rent Expense Depreciation Expense Total Expenses Net Income $12.000 800 4,200 2.800 19,800 20,200 Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information: 1. 2 3. A utility bill for $1.200 was received on the last day of the month for electric and gas service for the month of June. A company insurance salesman sold a life insurance policy to a client for a premium of $10,000. The agency billed the client for the policy and is entitled to a commission of 20% Supplies on hand at the beginning of the month were $2.500. The agency purchased additional supplies during the month for $1.500 in cash and $1.200 of supplies were on hand at June 30. The agency purchased a new car at the beginning of the month for $24,000 cash. The car will depreciate $6,000 per year. Salaries owed to employees at the end of the month total $5,300. The salaries will be paid on July 5.

Answer 1

Adjusted income statement

Revenues
Service revenue (40000+2000)		42000
Expense
Salaries and wages expense (12000+5300)	17300
Advertising expense	800
Rent expense	4200
Utilities expense	1200
Supplies expense (2500+1500-1200)	2800
Depreciation expense (6000/12)+2800	3300
Total expense		29600
Net income		12400