At the end of June, the first month of operations, the following selected data were taken from the financial statements of Teryse Weire, an attorney:
Net income for June ......... $155,000
Total assets at June 30 ........ 350,000
Total liabilities at June 30 ....... 120,000
Total owner's equity at June 30 ... 230,000
In preparing the financial statements, adjustments for the following data were overlooked:
a. Supplies used during June, $1,800.
b. Unbilled fees earned at June 30, $11,600.
c. Depreciation of equipment for June, $4,950.
d. Accrued wages at June 30, $2,250.

Instructions
1. Journalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for June and the total assets, liabilities, and owner's equity at June 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. Adjustment (a) is presented as anexample.

Transcribed Image Text:

Net Income Total Assets Total Liabilities Total Owner's Equity $230,000 Reported amounts $155,000 350,000 120,000 Corrections: -1,800 Adjustment (a) Adjustment (b) Adjustment (c) Adjustment (d) Corrected amounts -1,800 -1,800 0