Decision Case F:3-1 One year ago, Tyler Stasney founded Swit Classified Ads. Stasney remembersthat you took an accounting course while in college and comes to you foradvice. He wishes to know how...

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Decision Case F:3-1 One year ago, Tyler Stasney founded Swit Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted. Cash Accounts Payable Common Stock Salaries Expense Dec.31 5,800 21,500 Dec. 31 20,000 Dec. 31 Dec. 31 17,000 Depreciation Accounts Receivable Unearned Revenue Dividends Expenseโ€”Equipment Dec. 31 12,000 4,000 Dec. 31 Dec. 31 28,000 Prepaid Rent Salaries Payable Service Revenue Rent Expense Jan.2 2,800 Office Supplies Jan.2 2,600 Equipment Jan.2 36,000 Accumulated Depreciatio Equipment 59,500 Dec. 31 Utilities Expense Dec. 31 800 Supplies Expense Cash Accounts Payable Common Stock Salaries Expense Dec. 31 5,800 21,500 Dec. 31 20,000 Dec.31 Dec. 31 17,000 Depreciation Accounts Receivable Unearned Revenue Dividends Expenseโ€”Equipment Dec. 31 12,000 4,000 Dec. 31 Dec. 31 28,000 Prepaid Rent Salaries Payable Service Revenue Rent Expense Jan.2 2,800 59,500 Dec. 31 Office Supplies Utilities Expense Jan. 2 2,600 Dec. 31 800 Equipment Supplies Expense Jan.2 36,000 Accumulated Depreciationโ€”Equipment Stasney indicates that at year-end, customers owe the business $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Swift Classified Ads collected $4,000 service revenue in advance from customers, but the business earned only $900 of that amount. Rent expense for the year was $2,400, and the business used up $1,700 of the supplies. Swift determines that depreciation on its equipment was $5,000 for the year. At December 31, the business owes an employee $1,200 accrued salary
Answered Same DayJul 20, 2022

Answer To: Decision Case F:3-1 One year ago, Tyler Stasney founded Swit Classified Ads. Stasney remembersthat...

Nitish Lath answered on Jul 20 2022
73 Votes
Sheet1
        Working Note    Adjustment entries
            Journal titles    Amount ($)    Amount ($)
            Accounts rece
ivable    1600
            service revenue        1600
            Unearned revenue    900
            Service revenue        900
            Rent expense    2400
            Prepaid rent        2400
            Supplies expense    1700
            Supplies        1700
            Depreciation...
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