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Business, 15.10.2020 14:01 biba54

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: Income Statement, 2018

Rent Revenue $114,000
Expenses:
Salaries and Wages Expense $28,500
Repairs and Maintenance Expense 13,000
Rent Expense 9,000
Utilities Expense 4,000
Travel Expense 3,000
Total Expenses 57,500
Income $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 $310 were not recorded or paid.
b. The $400 telephone bill for December 2018 has not been recorded or paid.
c. Depreciation of equipment amounting to $23,000 for 2018 was not recorded.
d. Interest of $500 was not recorded on the notes payable by Dyer, Inc.
e. The Rental Revenue account includes $4,000 of revenue to be earned in January 2019.
f. Supplies costing $600 were used during 2018, but this has not yet been recorded.
g. The income tax expense for 2018 is $7,000, but it won’t actually be paid until 2019.

Required:
Prepare, in proper form, an adjusted income statement for 2018.

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