Answer:
Entries to Record Additional Information.
J1
Trade Receivable $600 (debit)
Service Revenue $600 (credit)
J2
Depreciation $300 (debit)
Accumulated Depreciation $300 (credit)
J3
Salaries Expense $800 (debit)
Salaries Accrued $800 (credit)
J4
Rent Expense $500 (debit)
Prepaid Rent $500 (credit)
J5
Office Supplies $100 (debit)
Cash $100 (credit)
Adjustments to Relevant Ledger Accounts :
Service Revenue = $8,600 + $600 = $9,200
Depreciation = $300
Salaries Expense = $1,700 + $800 = $2,500
Rent Expense = $500
Supplies Expense = $100
November Net Income = $ 5,200
Explanation:
Income Statement for the Year Ended November 20,2014 :
Service Revenue $9,200
Less Expenses :
Depreciation $300
Salaries Expense $2,500
Rent Expense $500
Supplies Expense $100
Utilities expense $600 ($4,000)
Net Income / (Loss) $5,200
