Question

3. By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded? (Enter your answers in thousands of dollars.) Net income by

Answer 1

Req3 Net Income OVERSTATED by $33 Adjusting entries Insurance expense Depreciation expense Salaries and Wages expense Income tax expense Total adjustments $ 7 $ 6 $ 9 $ 11 $ 33

Mint Cleaning Inc Adjusting entries Date Account a Insurance expense Prepaid Insurance Debit Credit 7 b Depreciation expense Accumulated Depreciation C Salaries and Wages expense Salaries and Wages Payable d Income tax expense Income tax Payable

Mint Cleaning Inc T Accounts Date Debit Date Cash Beg bal $ 40 Credit Date Date Credit Date Credit Debit Date Credit Accounts Receivable $ 11 Debit Date Prepaid Insurance $ 8 Debit Date Equipment $ 84 Beg bal Beg bal Beg bal $ 7 Bal. Bal. Bal. $ 40 Accumulated Depreciation Beg bal $ $ $ 11 Accounts Payable Beg bal $ Salaries and Wages Payable Beg bal $- $ 84 Income tax Payable Beg bal . $ 11 $ $ . 11 6 Bal. $ 11 Bal. $ 9 Bal. $ 11 Common Stock Beg bal Bal. Retained Earnings Beg bal $ 80 $ 8 $ 80 $ 8 Bal. Sales Revenue Beg bal $ 84 Beg bal Bal. Insurance expense $ . $ 7 Salaries and Wages expense Beg bal $ 12 Beg bal Supplies expense $ 28 84 Bal. Bal. $ 21 | Bal. $ 28 Bal. $ Depreciation expense $ . $ 6 $ 7 Income tax expense $ . $ 11 Beg bal Beg bal Bal. $ 6 Bal. $ 11

Adjusted TB Debit Credit 40 Mint Cleaning Inc Account Names Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income tax Payable Common Stock Retained Earnings Sales Revenue Insurance expense Salaries and Wages expense Supplies expense Depreciation expense Income tax expense Totals 11 209 209