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1 On December 31, 2018. Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries.
1 On December 31, 2018. Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement , prepared on this incorrect basis, reported income before income tax of $31,000. The balance sheet (before the effect of income taxes) reflected total assets. $92,000 total liabilities. $41.000, and stockholders' equity, $51,000. The data for the four adjusting journal entries follow 30 point FO Effect of Amortization of $8.200 for the year on software was not recorded b. Salaries and Woges amounting to $17.200 for the last three days of December 2018 were not paid and not recorded (the next payroll will be on January 10, 2019) c. Rent revenue of $5,100 was collected on December 1, 2018, for office space for the three-month period December 1, 2018, to February 28, 2019. The $5,100 was credited in full to Deferred Revenue when collected a Income taxes were not recorded and not paid. The income tax rate for the company is 20% 00:46:54 Required: Complete the following table to show the effects of the four adjusting journal entries. (Negative amounts should be indicated by minus sign.) Net Income 31.000 Total Assets 12.000 Total Liabilities Stockholders' Equity 41.000 $ 51.000 5 Hems Amounts reported Elector amortization Emoct of salaries and wages Efect of rent revenue Agusted balances d. Elfect of income Contect amounts $ 0 05 0 $ 0
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