The Blue Chip Co. prepared the following income statement for December 31, 2008 but neglected to make the necessary adjusting entries. Revenues Expenses Wage Expense Rent Expense The Blue Chip Co. Income Statement For the Year ending December 31, 2019 Telephone Expense Utility Expense Total Expenses Profit Revenues $16,480 4,320 560 960 $96.400 Required: Prepare a corrected income statement after considering the following: (1.) The company had purchased a truck for $4,800 on January 1, 2019 which was expected to last 5 years. It was originally debited to the account "Truck" and credited to cash. (2.) Salaries of $2,400 were owed to employees but not yet recorded. (3.) The company owed $640 in accrued interest which was to be paid early in January, 2020. (4.) In November, 2019 the company had received $3,600 of advance payments which were originally recorded as Unearned Revenue. One-third of this was earned in December, 2019. The Blue Chip Co. Income Statement For the Year ending December 31, 2019 22.320 74,080 $97,600
The Blue Chip Co. prepared the following income statement for December 31, 2008 but neglected to make the necessary adjusting entries. Revenues Expenses Wage Expense Rent Expense The Blue Chip Co. Income Statement For the Year ending December 31, 2019 Telephone Expense Utility Expense Total Expenses Profit Revenues $16,480 4,320 560 960 $96.400 Required: Prepare a corrected income statement after considering the following: (1.) The company had purchased a truck for $4,800 on January 1, 2019 which was expected to last 5 years. It was originally debited to the account "Truck" and credited to cash. (2.) Salaries of $2,400 were owed to employees but not yet recorded. (3.) The company owed $640 in accrued interest which was to be paid early in January, 2020. (4.) In November, 2019 the company had received $3,600 of advance payments which were originally recorded as Unearned Revenue. One-third of this was earned in December, 2019. The Blue Chip Co. Income Statement For the Year ending December 31, 2019 22.320 74,080 $97,600
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
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![The Blue Chip Co. prepared the following income statement for December 31, 2008 but neglected to make the
necessary adjusting entries.
Revenues
Expenses
Wage Expense
Rent Expense
Telephone Expense
Utility Expense
Total Expenses
Profit
The Blue Chip Co.
Income Statement
For the Year ending December 31, 2019
Revenues
Expenses
Wages
Rent
Required: Prepare a corrected income statement after considering the following:
(1.) The company had purchased a truck for $4,800 on January 1, 2019 which was expected to last 5 years. It
was originally debited to the account "Truck" and credited to cash.
(2.) Salaries of $2,400 were owed to employees but not yet recorded.
(3.) The company owed $640 in accrued interest which was to be paid early in January, 2020.
(4.) In November, 2019 the company had received $3,600 of advance payments which were originally recorded
as Unearned Revenue. One-third of this was earned in December, 2019.
Telephone
Utilities
Depreciation
Interest
Profit
$16,480
4,320
560
960
The Blue Chip Co.
Income Statement
For the Year ending December 31, 2019
Total Expenses
$18,880
4,320
$96.400
560
960
960
640
22.320
74.080
$97,600
26.320
71.280](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F831586d2-5211-4904-82a3-e4049c63e009%2Fbb46f2d3-a520-4e20-b3c1-899467eaaab2%2Fo940z2k.bmp&w=3840&q=75)
Transcribed Image Text:The Blue Chip Co. prepared the following income statement for December 31, 2008 but neglected to make the
necessary adjusting entries.
Revenues
Expenses
Wage Expense
Rent Expense
Telephone Expense
Utility Expense
Total Expenses
Profit
The Blue Chip Co.
Income Statement
For the Year ending December 31, 2019
Revenues
Expenses
Wages
Rent
Required: Prepare a corrected income statement after considering the following:
(1.) The company had purchased a truck for $4,800 on January 1, 2019 which was expected to last 5 years. It
was originally debited to the account "Truck" and credited to cash.
(2.) Salaries of $2,400 were owed to employees but not yet recorded.
(3.) The company owed $640 in accrued interest which was to be paid early in January, 2020.
(4.) In November, 2019 the company had received $3,600 of advance payments which were originally recorded
as Unearned Revenue. One-third of this was earned in December, 2019.
Telephone
Utilities
Depreciation
Interest
Profit
$16,480
4,320
560
960
The Blue Chip Co.
Income Statement
For the Year ending December 31, 2019
Total Expenses
$18,880
4,320
$96.400
560
960
960
640
22.320
74.080
$97,600
26.320
71.280
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