MegaTech Company Has Total Monthly Revenues of $325,000 and Expenses

Essay

MegaTech Company has total monthly revenues of $325,000 and expenses of
$198,000 for the month ended July 31 before monthly adjusting entries are made. The following data are provided on the end of month adjustments to be made:
a. Insurance expired in July, $2,520.
b. Unbilled amounts to customers for July is $4,200.
c. Salaries earned by employees but not yet paid by MegaTech for the last week of July, $13,125.
d. Depreciation on equipment for July, $1,290.
e. Supplies used in July, $1,650.
f. Fees collected in advance from customers which have now been earned during
July, $23,400.



Complete the schedule below to determine the profit of MegaTech for July after these adjustments are recorded. Begin your schedule with income before
adjusting entries and then show the effect of each adjustment to arrive at profit
after adjustment.