Explain how much net income did ShipIT Transportation Inc. earn during the year ended December 31, 2016?

do the assignment on the exact document

Question 2.2
Scranton Motors Ltd company faced the following situations.
·
The business has an interest
expense of $9,000 early in January 2017.
·
An interest revenue of $2,000
has been earned but not yet received.
·
When the business collected
$12,000 in advance three months ago, the accountant debited Cash and credited
Unearned Revenue. The client was paying for two cars, one delivered in
December, the other will be delivered in February 2017.
·
Salary expense is $500 per day
– Monday through Friday – and the business pays employees each Friday. For
example, purposes, assume that this year, December 31 falls on a Tuesday.
·
The unadjusted balance of the
Supplies account is $2,100. The total cost of supplies on hand is $800.
Equipment
was purchased at the beginning of this year at a cost of $40,000. The
equipment’s useful life is four
Question 2.2
Scranton Motors Ltd company faced the following situations.
·
The business has an interest
expense of $9,000 early in January 2017.
·
An interest revenue of $2,000
has been earned but not yet received.
·
When the business collected
$12,000 in advance three months ago, the accountant debited Cash and credited
Unearned Revenue. The client was paying for two cars, one delivered in
December, the other will be delivered in February 2017.
·
Salary expense is $500 per day
– Monday through Friday – and the business pays employees each Friday. For
example, purposes, assume that this year, December 31 falls on a Tuesday.
·
The unadjusted balance of the
Supplies account is $2,100. The total cost of supplies on hand is $800.
Equipment
was purchased at the beginning of this year at a cost of $40,000. The
equipment’s useful life is four
·
years. Record the depreciation
for this year and then determine the equipment’s carrying amount.
1.
Journalize the adjusting entry
needed at year end for each situation. Each scenario should be considered
independently.

Question 2.3
1.
Prepare the required closing
entries for the following selected accounts from the records of ShipIT
Transportation Inc. on December 31, 2016.

Cost of services sold

$11,600

Accumulated depreciation

17,800

Selling, general, and administrative expense

6,900

Retained earnings, December 31, 2015

1,900

Service revenue

23,600

Depreciation expense

4,100

Other revenue

600

Income tax expense

400

Dividends

400

Income tax payable

300

2.
Explain how much net income did ShipIT Transportation Inc. earn during the year ended December 31, 2016? Prepare a
T-account for Retained Earnings to show the December 31, 2016 balance of
Retained Earnings.

Last Completed Projects