Adjustments and Errors At the end of May, the first month of operations, the following selected...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Total assets at May 31 Total liabilities at May 31 Total stockholders' equity at May 31 $181,600 977,000 322,000 655,000 In preparing the financial statements, adjustments for the following data were overlooked: a1. Unbilled fees earned at May 31, $10,130. a2. Depreciation of equipment for May, $4,600. a3. Accrued wages at May 31, $3,240. a4. Supplies used during May, $2,840. 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 a1 is presented as an example. Net Income Total Assets = Total Liabilities + Reported amounts: $181,600 $977,000 $322,000 Total Stockholders' Equity $655,000 Corrections: Adjustment al Adjustment a2 10,130 10,130 0 10,130 Adjustment a3 Adjustment a4 Corrected amounts 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 Total assets at May 31 Total liabilities at May 31 Total stockholders' equity at May 31 $181,600 977,000 322,000 655,000 In preparing the financial statements, adjustments for the following data were overlooked: a1. Unbilled fees earned at May 31, $10,130. a2. Depreciation of equipment for May, $4,600. a3. Accrued wages at May 31, $3,240. a4. Supplies used during May, $2,840. 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 a1 is presented as an example. Net Income Total Assets = Total Liabilities + Reported amounts: $181,600 $977,000 $322,000 Total Stockholders' Equity $655,000 Corrections: Adjustment al Adjustment a2 10,130 10,130 0 10,130 Adjustment a3 Adjustment a4 Corrected amounts
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Suppose that you have 6 hours per day to devote to studying economics and accounting. You estimate your benefits of studying for each subject as follows: What is the best way for you to divide up...
-
Maryland v. H.G. Hahn & Co. - Using Westlaw, what is case citation information using bluebook for Maryland v. H.G. Hahn & Co. ,and is the case about?
-
dy Find dx by implicit differentiation. 2 (1 + ex) = 4 + In (x + y),y x
-
To determine the focal length of a lens, you place the lens in front of a small lightbulb and then adjust a viewing screen to get a sharply focused image. Varying the lens position produces the...
-
Refer to Exercise 19. Assume that for a certain bacterium, r = 0.8 0.1 m and h = 1.9 0.1 m. a. Estimate S, and find the relative uncertainty in the estimate. b. Estimate V, and find the relative...
-
Which of the following is not found in a prokaryotic cell? a. Plasma membrane b. Ribosome c. Cell nucleus d. Cytoplasm
-
Construct a truth table or Venn diagram to prove whether the following argument is valid. If the argument is valid, determine whether it is sound. If John Mayer played MTV unplugged, then some...
-
Quay Co. had the following transactions during the current period. Mar. 2 Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services performed in...
-
urgentplease!!! A mortgage for a condominium had a principal balance of \( \$ 47,900 \) that had to be amortized over the remaining period of 5 years. The interest rate was fixed at \( 4.92 \% \)...
-
On 1st January 2019 the account receivable balance brought forward from the previous year totaled 140,900. During the year ended 31 December 2019, total sales amounted to 322,520 of which 85%...
-
Can you explain why the bottom one is preferred? We are studying security vulnerabilities. Noncompliant void readData() throws IOException{ BufferedReader br = new BufferedReader(new...
-
Calculate the Volume and Open Interest based on the daily trading data given in the table below. Day Trading Activities 1 A buys 4 futures and D sells 4 futures 2 J buys 6 futures and C sells 6...
-
Student: 0 A Design 2 LEGEND ES ID EF SLK Descrptn LS DUR LF B Build. 4 C Order 3 D Production 4 E Marketing 5 INSTRUCTIONS: Calculate forward and backward passes and in the network. Given the...
-
1) How is the current makeup of the Texas Legislature different from the actual makeup of Texas? Does it matter? 2) Why is the Texas Legislature a part-time legislature? 3) How did the Texas Senate...
-
The ADJUSTED Trial Balance of Practice Merchants for the year ended December 31, 2023, follows: Practice Merchants ADJUSTED Trial Balance December 31, 2023 Account Title Balance Wages Expenses 30,000...
-
The system of linear equations x+3y-z=15 2x+4y+2z 30 3x+y-z=17 has a unique solution. What is the value of y in this solution?
-
Find the moments of inertia I, I, Io for a lamina that occupies the region D and has the given density function p. D = {(x, y) | 1 x 3, 1 y 4}; p(x, y) = ky Ly Need Help? Read It -/1 Points] DETAILS...
-
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
-
Sidney Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated depreciation is...
-
Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. 1. In each space below, place the correct sign [less than ( ), or equal (=)] for each comparison,...
-
Kopecky Industries Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash...
-
What are the sources that you might use to evaluate stock investments?
-
What are the different types of stock investments?
-
Kwames grandmother recently gave him 25 shares of preferred stock. Kwame would like to figure out the actual dollar amount of the dividend, which is a percentage of the par value of the stock.
Study smarter with the SolutionInn App