Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mint cleaning inc. prepared the following unadjust

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second...

60.1K

Verified Solution

Question

Accounting

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Account Titles Debit Credit
Cash $ 55
Accounts Receivable 4
Prepaid Insurance 7
Equipment 114
Accumulated Depreciation $ 0
Accounts Payable 4
Common Stock 110
Retained Earnings 14
Sales Revenue 122
Insurance Expense 0
Salaries and Wages Expense 27
Supplies Expense 43
Totals $ 250 $ 250

Other data not yet recorded at December 31:
a. Insurance expired during the year, $5.
b. Depreciation expense for the year, $4.
c. Wages payable, $7.
d.

Income tax expense, $9.

By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded?

Required:

Using the above adjusted balances, prepare an income statement.
Required:

Using the above adjusted balances, prepare a statement of retained earnings.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Civil Engineering
1.2K views

Advise when a contractor will not be in breach of a construction contract as defined under...

Electrical Engineering
1.2K views

Derive the equations (for average value of load voltage) of three phase half controlled rectifier and...

Biology
1.2K views

www witn Entrepreneurship in Biotech Bridge the gap fro classroom to commercializatic

Biology
1.2K views

During radioactive decay an isotope will lose mass and or energy and become a different...

Physics
1.2K views

What is Binding Energy The energy that keeps the electrons attracted to the protons The...

Geometry
1.2K views

Find the area of a rhombus with a perimeter of 48 and one angle of...

Algebra
1.2K views

LICERE COSTRE Real Minimum 312201 SEEEEE Maximum X Popo Ritengo TURGE V Answer the questions...

Accounting
1.2K views

All of the following should generally be included as taxable income on form 1040, Line...

Accounting
1.2K views

Two-Period Model: Intertemporal Model Income and Substitution Effects Suppose there are two individuals, Frank and...

Finance
1.2K views

Current year Previous year 60% 78% 75% 85% 50% 90% 70% 80% Customer rating of...

Accounting
1.2K views

Hummingbird Company uses the product cost method of applying the cost-plus approach to product pricing....

Accounting
1.2K views

If the prime cost is 50000$ and direct labor cost is 26000 $ than direct...