Question Completion:
See attached document for original data.
Answer:
Ramirez Company
Unadjusted Adjusted
1. Net income $8,930 $3,240
2. The net income after the adjusting entries is correct.
Explanation:
a) Data and Calculations:
Unadjusted Adjusted
Service revenue $64,400 $66,220
Salary expense 55,470 55,470
Depreciation expense 6,000
Insurance expense 130
Income tax expense 1,380
Accounts receivable accrued $1,820
Income Statements
Unadjusted Adjusted
Service revenue $64,400 $66,220
Salary expense 55,470 55,470
Depreciation expense 6,000
Insurance expense �� 130
Income tax expense 1,380
Total expenses $55,470 $62,980
Net income $8,930 $3,240
