Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 31

Howard Realty adjusts its accounts monthly but closes them only at the end of the calendar year.elow are the adjusted balances of the revenue and expense accounts at September 30 of the current year and at the ends of two earlier months:

Instructions
a.repare a three-column income statement, showing net income for three separate time periods, all of which end on September 30.se the format illustrated below.how supporting computations for the amounts of revenue in the first two columns.

b.riefly explain how you determined the dollar amounts for each of the three time periods.ould you apply the same process to the balances in Howard's balance sheet accounts Explain.
c.ssume that Howard adjusts and closes its accounts at the end of each month.riefly explain how you then would determine the revenue and expenses that would appear in each of the three columns of the income statement prepared in part a.