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question at the end of april the first month of operations thefollowing selected dat 4281107

Question

At the end of April, the first month of operations, thefollowing selected data were taken from the financial statements ofShelby Crawford, an attorney:

Net income for April

$102,000

Total assets at April 30

736,400

Total liabilities at April 30

284,750

Total owner’s equity at April 30

451,650

 

 

In preparing the financial statements, adjustments for thefollowing data were overlooked:

 

a. Supplies used during April, $3,200.

 

b. Unbilled fees earned at April 30, $22,700.

 

c. Depreciation of equipment for April, $2,000.

 

d. Accrued wages at April 30, $1,450.

 

Corrected Amounts

 

1

 

Net Income

Total Assets =

Total Liabilities +

Total Owner’s Equity

2

Reported amounts

$102,000.00

$736,400.00

$284,750.00

$451,650.00

3

Corrections:

 

 

 

 

4

Adjustment (a)

(3,200.00)

(3,200.00)

0.00

(3,200.00)

5

Adjustment (b)

 

 

 

 

6

Adjustment (c)

 

 

 

 

7

Adjustment (d)

 

 

 

 

8

Corrected amounts

 

. Journalize the entries on April 30 to record the omittedadjustments. Refer to the Chart of Accounts for exact wording ofaccount titles.

PAGE 10

JOURNAL

2. Determine the correct amount of net income for April and thetotal assets, liabilities, and owner’s equity at April 30. Inaddition to indicating the corrected amounts, indicate the effectof each omitted adjustment using the columnar table provided.Adjustment (a) is presented as an example. (Note: Use a minus sign(-) to indicate a decrease. If there is no amount or an amount iszero, enter “0”.)

Corrected Amounts

 

 

         

1

 

Net Income

Total Assets =

Total Liabilities +

Total Owner’s Equity

2

Reported amounts

$102,000.00

$736,400.00

$284,750.00

$451,650.00

3

Corrections:

 

 

 

 

4

Adjustment (a)

(3,200.00)

(3,200.00)

0.00

(3,200.00)

5

Adjustment (b)

 

 

 

 

6

Adjustment (c)

 

 

 

 

7

Adjustment (d)

 

 

 

 

8

Corrected amounts

 

 

 

 

           

 

 

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