Cal's Lawn Care prepared the following income statement BEFORE adjustments:
Cal's Lawn Care
Income Statement
For the Month Ended September 30, 2011
Revenues
Sales $80,000
Interest 5,000
Total revenues $85,000
Expenses
Salaries 18,000
Rent 6,000
Supplies 200
Depreciation 5,000
Total expenses 29,200
Net income (loss) $55,800
Required:
Determine the profit or loss AFTER adjustment given the following additional information for the month of September:
a. Salaries earned but unrecorded and unpaid equals $8,000.
b. Depreciation for the month should be an additional $2,000.
c. Additional supplies used up equals $100.
d. Unearned revenue earned equals $1,000.
$55,800 - 8,000 - 2,000 - 100 + 1,000 = $46,700
You might also like to view...
A schedule log is one of the easier-to-use quantity control devices
Indicate whether the statement is true or false.
Employment discrimination based on marital status is a prima facie Title VII violation for sex discrimination
a. True b. False Indicate whether the statement is true or false