Answer
Blossom Company
Income Statement
for the month of July
$ $
Revenues (1) 7,920
Salaries and Wages Expense (2) 2,540
Supplies Expense (3) 710
Insurance expense (4) 470
Depreciation Expenses (5) 250
Utilities Expense <u> 720</u>
Total expenses <u>4,690</u>
Adjusted Net Income <u>3,230</u>
Explanation
1. Revenues
Revenues per question $ 7,210
Unrecorded services (Note 5 in question) <u>$ 710</u>
Adjusted revenues <u> $ 7,920</u>
2. Salaries and wages Expense
Salaries and wages expenses per question $ 2,220
Accrued wages not included (Note 4 in question) <u> $ 320 </u>
Adjusted Salaries and wages Expense <u> $ 2,540 </u>
3. Supplies Expense
Supplies Expenses per question $ 960
Supplies on hand to be adjusted ( Note 2 in quest,) <u>$ (250)</u>
Adjusted Supplies Expenses <u>$ 710</u>
4. Insurance expired to be expenses ( Note 1 in quest, <u>$ 470</u>
5. Depreciation to be recorded (Note3 in question) <u>$ 250</u>
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