The unadjusted account balances of Stinson Consulting follow:
Adjusting data at the end of the year included the following:
a. Unearned service revenue that has been earned during the year, $4,600.
b. Work was completed but has not been invoiced. The company needs to accrue service revenue in the amount of $2,700.
c. Still need to record the supplies that were used up in operations, $1,900.
d. Employees have worked but have not been paid $2,400. The company needs to accrue salary expense.
e. Prepaid insurance was used up during the accounting period in the amount of $2,800.
f. Amortization expense that has not been recorded yet-furniture, $2,300; building, $3,100.
Scott Stinson, the proprietor of Stinson Consulting, has received an offer to sell his company. He needs to know the following information as soon as possible:
1. Net income for the year covered by these data
2. Total assets
3. Total liabilities
4. Total owner’s equity
5. Proof that total assets equal total liabilities plus total owner’s equity after all items are updated
Required
Without opening any accounts, making any journal entries, or using a worksheet, provide Scott Stinson with the requested information. Show all computations.
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