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Required A1 Required A2 Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Commissions revenue Interest revenue Total revenues Rent expense Wages expense Supplies expense Interest expense Total expenses Net income BIG BLUE RENTAL CORPORATION Income Statement August 2022 Preliminary $ 9,500 2,200 $ 11,700 $ $ $ $ Show Transcribed Text Adjustments or Corrections Debit Credit 1,170 2,430 3,600 $ 8,100 0 $ 0 $

Required A1 Required A2 Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Commissions revenue Interest revenue Total revenues Rent expense Wages expense Supplies expense Interest expense Total expenses Net income BIG BLUE RENTAL CORPORATION Income Statement August 2022 Preliminary $ 9,500 2,200 $ 11,700 $ $ $ $ Show Transcribed Text Adjustments or Corrections Debit Credit 1,170 2,430 3,600 $ 8,100 0 $ 0 $

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...
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Required A1 Required A2 Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Commissions revenue Interest revenue Total revenues Rent expense Wages expense Supplies expense Interest expense Total expenses Net income + Assets Cash Notes receivable Commissions receivable Interest receivable Prepaid rent Supplies Show Transcribed Text Notes payable Interest payable Wages payable Dividends payable Total liabilities Paid-in capital BIG BLUE RENTAL CORPORATION Income Statement August 2022 Preliminary $ Assets Cash Notes receivable $ $ $ $ Total assets Liabilities and Stockholders' Equity Accounts payable Paid-in capital Retained earnings: Balance, August 1 Net income Dividends Commissions receivable Interest receivable Prepaid rent Supplies Show Transcribed Text 9,500 2,200 11,700 $ 1,170 2,430 3,600 $ 8,100 Using the columns provided on the balance sheet for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Note: Enter amounts in the Adjustments or Corrections columns as positive numbers. Net income Adjustments or Corrections: Please use the numbers from the Income Statement and enter amounts in both the Debit and Credit columns. Negative amount(s) should be indicated by a minus sign. Adjustments or Corrections Debit Credit < Required A1 BIG BLUE RENTAL CORPORATION Balance Sheet August 31, 2022 Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Interest payable Wages payable Dividends payable Total liabilities Preliminary $ 4 $ $ $ $ Balance, August 31 Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 $ 1,050 28,000 480 5,400 90 1,800 30,850 $ 5,970 $ 5,400 S Adjustments or Corrections Debit Credit $ Preliminary $ $ Balance Sheet August 31, 2022 $ $ 0 $ 0 $ $ 0 $ $ 0 $ $ $ $ Required A2 > 1,050 28,000 1,800 30,850 480 5,400 90 Final 11,380 8,100 $ 5,970 $ 5,400 0 19,480 $ 24,880 $ 30,850 $ 0 0 0 $ 0$ Final Adjustments or Corrections Debit Credit 0 0 $ 0 $ 0 $ $ 0 $ Show less A 0 $ 0 $ 0 $ 0 $ 0 $ Final 0 0 0 0 0
Transcribed Image Text:Required A1 Required A2 Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Commissions revenue Interest revenue Total revenues Rent expense Wages expense Supplies expense Interest expense Total expenses Net income + Assets Cash Notes receivable Commissions receivable Interest receivable Prepaid rent Supplies Show Transcribed Text Notes payable Interest payable Wages payable Dividends payable Total liabilities Paid-in capital BIG BLUE RENTAL CORPORATION Income Statement August 2022 Preliminary $ Assets Cash Notes receivable $ $ $ $ Total assets Liabilities and Stockholders' Equity Accounts payable Paid-in capital Retained earnings: Balance, August 1 Net income Dividends Commissions receivable Interest receivable Prepaid rent Supplies Show Transcribed Text 9,500 2,200 11,700 $ 1,170 2,430 3,600 $ 8,100 Using the columns provided on the balance sheet for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) Note: Enter amounts in the Adjustments or Corrections columns as positive numbers. Net income Adjustments or Corrections: Please use the numbers from the Income Statement and enter amounts in both the Debit and Credit columns. Negative amount(s) should be indicated by a minus sign. Adjustments or Corrections Debit Credit < Required A1 BIG BLUE RENTAL CORPORATION Balance Sheet August 31, 2022 Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Interest payable Wages payable Dividends payable Total liabilities Preliminary $ 4 $ $ $ $ Balance, August 31 Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 $ 1,050 28,000 480 5,400 90 1,800 30,850 $ 5,970 $ 5,400 S Adjustments or Corrections Debit Credit $ Preliminary $ $ Balance Sheet August 31, 2022 $ $ 0 $ 0 $ $ 0 $ $ 0 $ $ $ $ Required A2 > 1,050 28,000 1,800 30,850 480 5,400 90 Final 11,380 8,100 $ 5,970 $ 5,400 0 19,480 $ 24,880 $ 30,850 $ 0 0 0 $ 0$ Final Adjustments or Corrections Debit Credit 0 0 $ 0 $ 0 $ $ 0 $ Show less A 0 $ 0 $ 0 $ 0 $ 0 $ Final 0 0 0 0 0
Big Blue Rental Corporation provides rental agent services to apartment building owners. Big Blue Rental Corporation's preliminary income statement for August 2022 and its August 31, 2022, preliminary balance sheet did not reflect the following: a. Rental commissions of $550 had been earned in August but had not yet been received from or billed to building owners. b. When supplies are purchased, their cost is recorded as an asset. As supplies are used, a record of those used is kept. The record sheet shows that $410 of supplies were used in August. c. Interest on the note payable is to be paid on May 31 and November 30. Interest for August has not been accrued-that is, it has not yet been recorded. (The Interest Payable of $90 on the balance sheet is the amount of the accrued liability at July 31.) The interest rate on this note is 10%. d. Wages of $310 for the last week of August have not been recorded. e. The Rent Expense of $1,170 represents rent for August, September, and October, which was paid early in August. f. Interest of $330 has been earned on notes receivable but has not yet been received. g. Late in August, the board of directors met and declared a cash dividend of $3,300, payable September 10. Once declared, the dividend is a liability of the corporation until it is paid. Required: a. 1. Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) 2. Using the columns provided on the balance sheet for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint Use the five questions of transaction analysis.) Complete this question by entering your answers in the tabs below. Required A1 Required A2
Transcribed Image Text:Big Blue Rental Corporation provides rental agent services to apartment building owners. Big Blue Rental Corporation's preliminary income statement for August 2022 and its August 31, 2022, preliminary balance sheet did not reflect the following: a. Rental commissions of $550 had been earned in August but had not yet been received from or billed to building owners. b. When supplies are purchased, their cost is recorded as an asset. As supplies are used, a record of those used is kept. The record sheet shows that $410 of supplies were used in August. c. Interest on the note payable is to be paid on May 31 and November 30. Interest for August has not been accrued-that is, it has not yet been recorded. (The Interest Payable of $90 on the balance sheet is the amount of the accrued liability at July 31.) The interest rate on this note is 10%. d. Wages of $310 for the last week of August have not been recorded. e. The Rent Expense of $1,170 represents rent for August, September, and October, which was paid early in August. f. Interest of $330 has been earned on notes receivable but has not yet been received. g. Late in August, the board of directors met and declared a cash dividend of $3,300, payable September 10. Once declared, the dividend is a liability of the corporation until it is paid. Required: a. 1. Using the columns provided on the income statement for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint: Use the five questions of transaction analysis.) 2. Using the columns provided on the balance sheet for Big Blue Rental Corporation, make the appropriate adjustments or corrections to the statements, and enter the correct amount in the Final column. (Hint Use the five questions of transaction analysis.) Complete this question by entering your answers in the tabs below. Required A1 Required A2
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