Assume the company has an increase in its Salaries Expense of 20% and a decrease...
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Accounting
Assume the company has an increase in its Salaries Expense of 20% and a decrease in Service Revenue of 15%. Both of which will be settled after the year end. Adjust and recalculate the balances in the Income Statement and Balance Sheet. All sales are on account. 2. What is the revised balance of the Service Revenue account?
multiple choice 2
$8,860
$78,540
$16,860
$34,860
3. What is the revised Net Income/(Loss)?
multiple choice 3
$10,540
$(10,140)
$16,540
$3,540
4. What is the revised balance in the Retained Earnings account?
multiple choice 4
$3,900
$8,900
$5,460
$16,900
Revise the data in your spreadsheet based on the following assumptions, and then answer the questions that follow: Expenses: Assets: Advertising Expense Insurance expense Salaries expense Rent expense $12,400 18,400 47,400 8,400 Cash Accounts receivable Supplies Land $24,400 22,400 13,400 51,000 Liabilities: Salaries payable Notes payable 10,400 29,600 Revenues : Service revenue Interest revenue 92,400 7,400 Dividends: Dividends 7,400 Equity: Common stock Retained earnings 42,400 23,000 Required: 1. What is the Net Income/(Loss)? O $23,000 O $13,200 O $15,400 O $22,100
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