Question

Whispering Advertising was founded by Murali Vedula in January 2015. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2017.

WHISPERING ADVERTISING TRIAL BALANCE DECEMBER 31, 2017
		Unadjusted						Adjusted
		Dr.			Cr.			Dr.			Cr.
Cash		$13,560						$13,560
Accounts Receivable		16,310						19,286
Supplies		9,610						6,495
Prepaid Insurance		3,870						2,247
Equipment		60,700						60,700
Accumulated Depreciation-Equipment					$26,150						$30,850
Notes Payable					8,700						8,700
Accounts Payable					1,800						1,800
Interest Payable					0						609
Unearned Service Revenue					4,800						2,864
Salaries and Wages Payable					0						821
Common Stock					20,850						20,850
Retained Earnings					8,387						8,387
Dividends		15,000						15,000
Service Revenue					62,703						67,615
Salaries and Wages Expense		9,880						10,701
Insurance Expense								1,623
Interest Expense								609
Depreciation Expense								4,700
Supplies Expense								3,115
Rent Expense		4,460						4,460
		$133,390			$133,390			$142,496			$142,496

No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 Taccounts Receivable Service Revenue 2976 (To record accrued service revenue) 2. Dec. 31 Supplies Expenses U3115 Supplies (To record supplies used) 3. Dec. 31 JInsurance Expense Prepaid Insurance (To expired insurance) 4. Dec. 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equiment) 5. Dec. 31 Interest Expense Interest Payable (To record interest accrued on the note) 6. Dec. 31 Unearned Service Revenue se Revenue 19387 Service Revenue (To record service revenue earned) 7. Dec. 31 Tsalaries and Wages Expense Salaries and Wages Payable 821 (To record accrued wages)

Answer 1

Income Statement:

WHISPERING ADVERTISING
Income Statement
For the Year Ended December 31,2017
Revenues:
Service revenue		$67,615
Expenses:
Salaries and Wages expense	$10,701
Insurance expense	$1,623
Interest expense	$609
Depreciation expense	$4,700
Supplies expense	$3,115
Rent expense	$4,460
Total expenses		$25,208
Net income		$42,407