At the end of July, the first month of operations, the following selected data were taken from the financial statements of Kay Lopez, Attorney-at-Law, P.C.
Net income for July ......... $124,350
Total assets at July 31 ......... 500,000
Total liabilities at July 31 ....... 125,000
Total stockholders€™ equity at July 31 .... 375,000
In preparing the financial statements, adjustments for the following data were overlooked:
a. Unbilled fees earned at July 31, $9,600.
b. Depreciation of equipment for July, $3,500.
c. Accrued wages at July 31, $1,450.
d. Supplies used during July, $1,100.

Instructions
Determine the correct amount of net income for July and the total assets, liabilities, and stockholders€™ equity at July 31. 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. Adjustment (a) is presented as anexample.

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Total Assets $500,000 Total Stockholders Equity $375,000 Net Income $124,350 Total Liabilities Reported amounts $125,000 Corrections: Adjustment (a) +9,600 +9,600 0 +9,600 Adjustment (b) Adjustment (c) Adjustment (d) Corrected amounts