At December 31, 2010, the following amounts

At December 31, 2010, the following amounts

At December 31, 2010, the following amounts were reported before adjusting entries (Column I) and after adjusting entries (Column II).

Â	I	II
Â	Unadjusted	Adjusted
Prepaid Rent	$ 6,540	$ 8,360
Unearned Revenue	11,340	14,670
Wages Payable	4,200	5,860
Accounts Receivable	11,300	13,525

What effect did the adjusting entries have on net income before taxes for the year ended December 31, 2010?

a. $1,265 decrease

b. $945 decrease

c. $2,075 increase

d. $1,235 increase

e. $965 increase

Is this the question you were looking for? If so, place your order here to get started!