able[[ADJUSTED TRIAL BALANCE,INCOME STATEMENT,BALANCE SHEET,],[DEBIT,CREDIT,DEBIT,CREDIT,DEBIT,CREDIT,],[33,9,00,00,,,,,,,,,,,,,,,33,,00,00,,,,,],[4,4,00,00,,,,,,,,,,,,,,,4,4,00,00,,,,,],[1,8,00,00,,,,,,,,,,,,,,,1,8,00,00,,,,,],[6,4,00,00,,,,,,,,,,,,,,,6,4,00,00,,,,,],[36,0,00,00,,,,,,,,,,,,,,,36,0,00,00,,,,,],[,,,,,,,0,0,,,,,,,,,,,,,,,6,00,00,],[,,,,,15,,0,0,,,,,,,,,,,,,,15,0,00,00,],[,,,,,60,,0,0,,,,,,,,,,,,,,60,0,00,000,],[6,0,00,00,,,,,,,,,,87,,,,,6,00,00,00,,,,,],[,,,,,62,,60,0,0,,,,,62,6,60,100,,,,,,,,,],[1,2,00,00,,,,,,,12,20,0,00,,,,,,,,,,,,,],[1,6,00,00,,,,,,,16,60,0,00,,,,,,,,,,,,,],[,6,00,00,,,,,,,,60,0,00,,,,,,,,,,,,,],[7,0,00,00,,,,,,,7C,00,0,00,,,,,,,,,,,,,],[37,2,00,00,,,,,,,372,20,0,00,,,,,,,,,,,,,],[2,1,60,OC,,,,,,, able[[2,1]],16,60,00,,,,,,,,,,,,,],[,,,,,,,,,,497,76,60,00,62,6,60,00,88,50,00,00,75,6,00,0.0,00],[,,,,,,,,,,12s,90,00,00,-,,,,5,a,5,10,12,9,,0.0,00],[138,2,60,0,,138,,6,,0,626,66,60,00,62,6,60,00,88,5,00,00,88,,00,0.0,00],[,,,,,,,,,,,,,,,,,,â—»,1,1,E,,,,,]]
If the income statement were prepared using trial balance amounts, the net income would be $95,560. A review of the company's records reveals the following information:
Rent of $72,000 was paid on July 1,20 imes 1, for 12 months.
Purchases of supplies during the year totaled $42,000. An inventory of supplies taken at yearend showed supplies on hand of $12,850.
The building was purchased three years ago and has an estimated life of 30 years and a salvage value of $25,000.
No adjustments have been made to any of the accounts during the year.
Write a memo to Ms. Washington explaining the effect on the financial statements of omitting the adjustments. Indicate the change to net income that results from the adjusting entries.
INCOME STATEMENT DEBIT CREDIT
BALANCE SHEET DEBIT CREDIT 33 00 0 00 00 0 00 36 00 60000 1500000 6000000 600000
ADJUSTED TRIAL BALANCE DEBIT CREDIT 3000600 400 00 800 00 6 400 00 36 000 00 60 15 00 000 60 00 600000 62 660 00 200 00 00 0 00 37 00 6 00
6266000
20000 600 00 6 00 00 000 00 37 21 00 00 60 00 49 6 00 12 00 62 660 00
62 66000
8850000
751 60000 12 900 00 8850000
62660|00
8850|000
1382|6000
13826000
If the income statement were prepared using trial balance amounts, the net income would be $95,560 A review of the company's records reveals the following information: 1.Rent of $72,000 was paid on July 1,20X1,for 12 months 2.Purchases of supplies during the year totaled $42,000. An inventory of supplies taken at year- end showed supplies on hand of $12,850. 3. The building was purchased three years ago and has an estimated life of 30 years and a salvage value of $25,000. 4.No adjustments have been made to any of the accounts during the year Write a memo to Ms. Washington explaining the effect on the financial statements of omitting the adjustments. Indicate the change to net income that results from the adjusting entries.
