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(04-4-1 E4-18Recording the Effects of Adjusting Entries and Reporting a Corrected Income Statement and 04-1, 4-2 Balance Sheet ) On December 31, the bookkeeper for Grillo Company prepared the following income statement and bal. ance sheet summarized here but neglected to consider three adjusting entries. Corrected Amounts Effects of As Prepared Adjusting Entries Income Statement Revenues Expenses Income tax expense Net income $ 97,000 (73,000) $ 24,000 Balance Sheet Assets $ 20,000 22,000 Cash Accounts receivable Rent receivable Equipment Accumulated depreciation 50,000 (10,000) $ 82,000 Liabilities $ 10,000 Accounts payable Income taxes payable Stockholders' Equity Common stock Additional paid-in capital Retained earnings 10,000 30,000 32,000 $ 82,000