End-Of-Period Adjustments-Effect on Net Income

question 42

Essay

End-of-period adjustments-effect on net income
Ocean View,Inc.reported revenues of $645,000 and expenses of $360,000 for the month of May,before making any month-end adjusting entries.The following data are provided regarding adjusting entries:
(A.)Portion of insurance expiring in May,$2,520.
(B.)A customer has used the facilities for two weeks in May; the fee of $4,200 has not yet been billed.
(C.)Amount owed for salaries accrued in the last week of May,$1,650.
(D.)Depreciation on equipment for May $1,290.
(E.)Supplies used in May,$13,125.
(F.)Fees collected in advance which have been earned during May,$23,400.
Complete the schedule to determine the net income of Ocean View Inc.for May after these adjustments have been recorded.Begin your schedule with income before adjusting entries and then show the effect of each adjustment to arrive at net income after adjustment.

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Definitions:

Stomata

Small openings on the surfaces of plant leaves and stems that facilitate gas exchange.

Vascular Tissue

Specialized tissue in plants that is responsible for the transport of water and nutrients throughout the plant body.

Ground Tissue

Plant tissue that makes up the bulk of the plant body, involved in photosynthesis, storage, and support, excluding the vascular and dermal tissues.

Dermal Tissue

Dermal tissue is a protective outer layer of cells in plants, equivalent to skin in animals, that serves as the first defense barrier against the environment.