Adjustments and Errors

At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, P.C.:

Net income for May	$172,600
Total assets at May 31	922,000
Total liabilities at May 31	304,000
Total stockholders' equity at May 31	618,000

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

1. Unbilled fees earned at May 31, $10,200.
2. Depreciation of equipment for May, $4,600.
3. Accrued wages at May 31, $3,260.
4. Supplies used during May, $2,860.

Instructions:

Determine the correct amount of net income for May and the total assets, liabilities, and stockholders' equity at May 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table below. Enter account decreases as negative amounts. If an effect is zero, enter "0". Adjustment (a) is presented as an example.

	Net Income	Total Assets	=	Total Liabilities	+	Total Stockholders' Equity
Reported amounts:	$172,600	$922,000		$304,000		$618,000
Corrections:
Adjustment (a)	10,200	10,200		0		10,200
Adjustment (b)
Adjustment (c)
Adjustment (d)
Corrected amounts