Dyer, Inc., completed its first year of operations on December 31, 2015. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement:

Dyer, Inc., completed its first year of operations on December 31, 2015. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary income statement:

Income Statement, 2015
Rent Revenue				$	118,000
Expenses:
Salaries and Wages Expense	$	29,300
Repairs and Maintenance Expense		13,800
Rent Expense		9,800
Utilities Expense		4,800
Travel Expense		3,800
Total Expenses					61,500
Income				$	56,500

You are an independent CPA hired by the company to audit the firm’s accounting systems and financial statements. In your audit, you developed additional data as follows:
a.	Wages for the last three days of December amounting to $390 were not recorded or paid.
b.	The $480 telephone bill for December 2015 has not been recorded or paid.
c.	Depreciation of equipment amounting to $23,800 for 2015, was not recorded.
d.	Interest of $580 was not recorded on the note payable by Dyer, Inc.
e.	The Rental Revenue account includes $4,800 of revenue to be earned in January 2016.
f.	Supplies costing $680 were used during 2015, but this has not yet been recorded.
g.	The income tax expense for 2015 is $7,800, but it won’t actually be paid until 2016.

Prepare adjusting journal entry for each item (a) through (g) should be recorded at December 31, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prepare, in proper form, an adjusted income statement for 2015. Explanation: 2. Rental Revenue: $118,000 – $4,800 = $113,200 Salaries and Wages: $29,300 + $390 = $29,690 Utilities Expense: $4,800 + $480 = $5,280 Did the adjustments have a significant overall effect on the company’s net income?       Yes Explanation: 3. Net income was $56,500 before adjustments and $17,970 after adjustments. This decrease of $38,530 is significant; adjusted net income is only 31.81% of the unadjusted net income ($17,970/$56,500).