In: Accounting
Big Blue Rental Corp. provides rental agent services to apartment building owners. Big Blue Rental Corp.’s preliminary income statement for August 2019 and its August 31, 2019, preliminary balance sheet did not reflect the following:
Required:
a. Using the columns provided on the income statement and
balance sheet for Big Blue Rental Corp., make the appropriate
adjustments/corrections to the statements, and enter the correct
amount in the Final column. (Hint: Use the five questions
of transaction analysis.)
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Big Blue Rental Corp. | ||||||||||
Income Statement | Balance Sheet | |||||||||
Particulars | Revenue | Less | Expenses | Equals | Income | Assets | Equals | Liabilities | Plus | Equity |
Unbilled Rental Commission | 640.00 | - | 640.00 | 640.00 | 640.00 | |||||
Supplies used | - | 500.00 | (500.00) | (500.00) | (500.00) | |||||
Interest expense/ payable | 80.00 | (80.00) | 80.00 | (80.00) | ||||||
Wages expense/ payable | 400.00 | (400.00) | 400.00 | (400.00) | ||||||
Prepaid rent | (960.00) | 960.00 | 960.00 | 960.00 | ||||||
Interest revenue/ receivable | 420.00 | 420.00 | 420.00 | 420.00 | ||||||
Dividend liability | 4,200.00 | (4,200.00) |