At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: Net income for April Total assets at April 30 Total liabilities at April 30 Total owner's equity at April 30 $120,000 750,000 300,000 450,000 In preparing the financial statements, adjustments for the following data were overlooked: Supplies used during April, $2,750. Unbilled fees earned at April 30, $23,700 Depreciation of equipment for April, $1,800. Accrued wages at April 30, $1,400. Instructions 1. Journalize the entries to record the omitted adjustments 2. Determine the correct amount of net income for April and the total assets, liabilities and owner's equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The adjustment for supplies used is presented as an example (Continued Net Total Assets Total Total Owner's Liabilities Income Equity Reported amounts $750,000 $120,000 $300,000 $450,000 Corrections: Supplies used Unbilled fees earned -2,750 -2,750 -2,750 Equipment depreciation Accrued wages Corrected amounts

At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: Net income for April Total assets at April 30 Total liabilities at April 30 Total owner's equity at April 30 $120,000 750,000 300,000 450,000 In preparing the financial statements, adjustments for the following data were overlooked: Supplies used during April, $2,750. Unbilled fees earned at April 30, $23,700 Depreciation of equipment for April, $1,800. Accrued wages at April 30, $1,400. Instructions 1. Journalize the entries to record the omitted adjustments 2. Determine the correct amount of net income for April and the total assets, liabilities and owner's equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The adjustment for supplies used is presented as an example (Continued Net Total Assets Total Total Owner's Liabilities Income Equity Reported amounts $750,000 $120,000 $300,000 $450,000 Corrections: Supplies used Unbilled fees earned -2,750 -2,750 -2,750 Equipment depreciation Accrued wages Corrected amounts

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 6PA: At the end of April, the first month of operations, the following selected data were taken from the...

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