Uploaded by Chhorng Kim

4.5A answer

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Answer
Adjustments
AdamsConstructionCo.
Journalentries
DateAccount
1Suppliesexpense
Supplies
2Insuranceexpense
PrepaidInsurance
3
Depreciationexpense-Equipment
AccumulatedDepreciation-Equipment
Debit
$5,700
$3,900
$8,500
4Wagesexpense
$1,600
5Rentexpense
$
WagesPayable
RentPayable
Closingentries
200
6Constructionfeesearned
$134,000
7IncomeSummary
$93,010
IncomeSummary
Depreciationexpense-Equipment
Credit
$1,600
$
200
$ 134,000
8,500
Insuranceexpense
Rentexpense
Suppliesexpense
$
Utilitiesexpense
$40,990
S.Adams,Capital
30,000
S.Adams,Withdrawals
3,900
$4,000
IncomeSummary
S.Adams,Capital
2,640
$13,400
$ 5,700
$ 4,600
$ 2,810
Repairsexpense
9
$8,500
$47,460
PropertyTaxesexpnese
8900-3200
$3,900
Wagesexpense
Interestexpense
8
$5,700
Calculation
$40,990
$30,000
Analyzethefollowingcorrectionimpact
a)Assumethattheadjustmentforsuppliesusedconsistedofacredittosuppliesand
adebittosuppliesExpensefor$3200,whenthecorrectedamountwas$5,700.
Incomestatement
Suppliesexpense
Totalexpenses
NetIncome
Balancesheet
Supplies
TotalCurrentAssets
TotalAssets
Owners'equity
S.Adams,Capital
Understated$2,5005700-3200
Understated$
Overstated
2,500
$2,500
Overstated $2,500
Overstated $ 2,500
Overstated $2,500
Overstated$2,500
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