At the end of October, the first month of operations, the following selected data were taken from the financial statements of Lauren Powell, Attorney at Law, P.C.:

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

a. Unbilled fees earned at October \(31, \$ 8,000\).

b. Depreciation of equipment for October, \(\$ 5,500\).

c. Accrued wages at October 31, \$2,500.

d. Supplies used during October, \$1,725.

{Instructions}
1. Journalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for October and the total assets, liabilities, and stockholders' equity at October 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 an example.obj. 3

Transcribed Image Text:

Net income for October Total assets at October 31 Total liabilities at October 31 Total stockholders' equity at October 31 $ 99,480 400,000 100,000 300,000