Exercise XXXXXXXXXXThe following information relates to David Pande Co. for the year XXXXXXXXXXOwner’s capital, January 1, 2014 $48,456 Advertising expense $ 1,817 Owner’s drawings during 2014 6,057 Rent expense 10,499 Service revenue 64,204 Utilities expense 3,129 Salaries and wages expense 29, XXXXXXXXXXAfter analyzing the data, prepare an income statement for the year ending December 31, XXXXXXXXXXDAVID PANDE CO. Income Statement For the Year Ended December 31, 2014 $ $ $ XXXXXXXXXXShow List of Accounts XXXXXXXXXXAfter analyzing the data, prepare an owner’s equity statement for the year ending December 31, XXXXXXXXXXList items that increase owner's equity first.) DAVID PANDE CO. Owner’s Equity Statement For the Year Ended December 31, 2014 $ : : $ XXXXXXXXXXBrief Exercise XXXXXXXXXXH. Xiao has the following transactions during August of the current year. Aug. 1 Opens an office as a financial advisor, investing $8,236 in cash. 4 Pays insurance in advance for 6 months, $1,590 cash. 16 Receives $3,044 from clients for services performed. 27 Pays secretary $1,334 salary. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit XXXXXXXXXXBrief Exercise XXXXXXXXXXAn inexperienced bookkeeper prepared the following trial balance. HUEWITT COMPANY Trial Balance December 31, 2014 Debit Credit Cash $12,759 Prepaid Insurance $3,133 Accounts Payable 4,592 Unearned Service Revenue 3,792 Owner’s Capital 10,959 Owner’s Drawings 6,092 Service Revenue 27,559 Salaries and Wages Expense 20,559 Rent Expense 4,359 $37,110 $56,694 Prepare a correct trial balance, assuming all account balances are normal. HUEWITT COMPANY Trial Balance December 31, 2014 Debit Credit $ $ XXXXXXXXXXTotal $ $ Multiple Choice Question 98 Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment will be $1,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Debit Equipment, $7,200; Credit Accumulated Depreciation, $7, XXXXXXXXXXDebit Depreciation Expense, $150; Credit Accumulated Depreciation, $ XXXXXXXXXXDebit Depreciation Expense, $1,800; Credit Accumulated Depreciation, $1, XXXXXXXXXXDebit Depreciation Expense, $5,400; Credit Accumulated Depreciation, $5,400. Multiple Choice Question XXXXXXXXXXAt December 31, 2014, before any year-end adjustments, Murmur Company's Insurance Expense account had a balance of $2,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,800 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be $5,250. $2,450. $2,800. $3,450. Multiple Choice Question XXXXXXXXXXStone Roses Candies paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (29–31). Employees work 5 days a week and the company pays $1,500 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January? Salaries and Wages Expense 1, XXXXXXXXXXSalaries and Wages Payable 1, XXXXXXXXXXNo adjusting entry is required Salaries and Wages Expense 7, XXXXXXXXXXSalaries and Wages Payable 7, XXXXXXXXXXSalaries and Wages Expense 4, XXXXXXXXXXSalaries and Wages Payable 4,500