arch i On December 31, 2022, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and owner's equity $80,000. The incorrect income statement showed net income of $70,000. The data for the three adjusting entries were: 1. 2. 3. Salaries and wages amounting to $10,000 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. Rent payments of $8,000 was received for two months in advance on December 1. The entire amount was credited to Unearned Rent Revenue when paid. Depreciation expense for 2022 is $9,000. Complete the following table to correct the financial statement amounts shown. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Item Incorrect balances Effects of: Salaries and Wages Rent Revenue Depreciation Correct balances $ Net Income $70,000 $ Total Assets $150.000 $ Total Liabilities $70,000 ||

On December 31, 2022, Waters Company prepared an income statement and balance sheet, but falled to take into account three adiusting entries. The balance shect showed total assets $150,000, total liabilities $70,000, and owner's equity $80,000. The incorrect income statementshowed net income of $70000. The data for the three ad usting entries were 1. Salaries and wages amounting to $10,000 for the last 2 days in December were not paid and not necorded. The noct pavroll will be in January. 2. Rent payments of $8,000 was received for two months in advance on December 1. The entire amount was credited to Uneamed Rent Revenue when paid. 3. Depreciation expense for 2022 is $9,000. Complete the followins table to correct the hancial statement amounts shown (Enter neguthe amounts using either a nejothe sign! Dreneding the number ex 45 or parmitheses es. (45)