Homework answers / question archive / The income statement of Pharoah Company for the month of July shows net income of $2,200 based on Service Revenue $6,100, Salaries and Wages Expense $2,300, Supplies Expense $1,000, and Utilities Expense $600

The income statement of Pharoah Company for the month of July shows net income of $2,200 based on Service Revenue $6,100, Salaries and Wages Expense $2,300, Supplies Expense $1,000, and Utilities Expense $600

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1. The income statement of Pharoah Company for the month of July shows net income of $2,200 based on Service Revenue $6,100, Salaries and Wages Expense $2,300, Supplies Expense $1,000, and Utilities Expense $600. In reviewing the statement, you discover the following 1. 2. 3. Insurance expired during July of $300 was omitted. Supplies expense includes $150 of supplies that are still on hand at July 31. Depreciation on equipment of $250 was omitted. Accrued but unpaid salaries and wages at July 31 of $400 were not included. Services performed but unrecorded totaled $800. 4 5. Prepare a correct income statement for July 2020. Pharoah Company Income Statement
2.  The trial balances before and after adjustment for Monty Corp. at the end of its fiscal year are presented below. Monty Corp. Trial Balance August 31, 2020 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. $10,300 9,000 2,400 3,900 13,100 $10,300 9,700 700 2,700 13,100 $ 3,600 5,900 $ 4,300 5,900 1,000 800 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Common Stock Retained Earnings Service Revenue Rent Revenue Salaries and Wages Expense Supplies Expense Rent Expense Insurance Expense Depreciation Expense 0 1,500 11,400 3,600 34,100 10,900 11,400 3,600 34,800 11,600 17,200 0 15,100 0 18,200 1,700 15,100 1,200 700 0 $ 71,000 $7,00 $ 71,000 $73,400 $73,400 $ 73,400 Prepare the adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record accrued revenue) Aug. 31 (To record supplies used) Aug. 31 (To record expired insurance) Aug. 31 (To record depreciation) Aug. 31 (To record accrued salaries) Aug. 31 (To record rent earned)
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