Question -
a. Revenue of $62,000 was earned, but only $45,000 was collected. Expenses of $36,000 were incurred, but only $30,000 was paid. What is reported operating income?
b. Wages of $5,000 are paid every Friday for a five-day workweek. If year-end falls on a Tuesday, the adjusting entry for wages would be recorded at what amount?
c. Supplies Expense of $4,000 was recorded for 20x7. Assuming that $2,200 in supplies were purchased during the year and $640 in supplies remained at year end, what was the cost of supplies at the beginning of the year?