Question

Required information [The following information applies to the questions displayed below.) 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: $113,500 Income Statement, 2018 Rent Revenue Expenses: Salaries and Wages Expense $28,400 Repairs and Maintenance Expense 12,900 Rent Expense 8,900 Utilities Expense 3,900 Travel Expense 2,900 Total Expenses Income 57,000 $ 56,500 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: a. Wages for the last three days of December amounting to $300 were not recorded or paid. b. The $390 telephone bill for December 2018 has not been recorded or paid. c. Depreciation of equipment amounting to $22,900 for 2018 was not recorded. d. erest of 190 was not recorded on the notes payable by Dyer, Inc. e. The Rental Revenue account includes $3,900 of revenue to be earned in January 2019, f. Supplies costing $590 were used during 2018, but this has not yet been recorded. g. The income tax expense for 2018 is $6,900, but it won't actually be paid until 2019. 2. Prepare, in proper form, an adjusted income statement for 2018. DYER, INC. Income Statement

Answer 1

2.

DYER, INC.
Income Statement
For the year ended December 31,2018
Revenues:
Rent revenue	$113,500
Total revenues (i)	$113,500
Expenses:
Salaries and wages expense [28400+300 accrued wages]	$28,700
Repairs and maintenance expense	$12,900
Rent expense	$8,900
Utilities expense [3900 + 390 telephone bill]	$4,290
Travel expense	$2,900
Depreciation expense	$22,900
Supplies expense	$590
Interest expense	$490
Income tax expense	$6,900
Total expenses (ii)	$88,570
Net income (i-ii)	$24,930