Dyer Inc completed its first year of operations on December

Dyer, Inc., completed its first year of operations on December 31, 2015. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement: Income Statement, 2015 $113,000 Rent Revenue Expenses Salaries and Wages Expense Repairs and Maintenance Expense Rent Expense Utilities Expense Travel Expense $28,300 12,800 8,800 3,800 2,800 lotal Expenses 56,500 Income $56,500 You are an independent CPA hired by the company to audit the firm\'s accounting systems and financial statements. In your audit, you developed additional data as follows a. Wages for the last three days of December amounting to $290 were not recorded or paid b. The $380 telephone bill for December 2015 has not been recorded or paid c. Depreciation of equipment amounting to $22,800 for 2015, was not recorded d. Interest of $480 was not recorded on the note payable by Dyer, Inc e. The Rental Revenue account includes $3,800 of revenue to be earned in January 2016 f. Supplies costing $580 were used during 2015, but this has not yet been recorded g. The income tax expense for 2015 is $6,800, but it won\'t actually be paid until 2016

Solution

Income statement

Revenue
Rent revenue (113000-3800)	109200
Total revenue	109200
Expense
Salaries and wages expense (28300+2900	28590
Repairs and maintenance expense	12800
Rent expense	8800
Utilities expense	3800
Travel expense	2800
Depreciation expense	22800
Interest expense	480
Supplies expense	580
Income tax expense	6800
Total expense	87830
Net income	21370