At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney:

Net income for April	$102,000
Total assets at April 30	736,400
Total liabilities at April 30	284,750
Total owners equity at April 30	451,650

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

	a. Supplies used during April, $3,200.
	b. Unbilled fees earned at April 30, $22,700.
	c. Depreciation of equipment for April, $2,000.
	d. Accrued wages at April 30, $1,450.

Corrected Amounts

1

Net Income

Total Assets =

Total Liabilities +

Total Owners Equity

2

Reported amounts

$102,000.00

$736,400.00

$284,750.00

$451,650.00

3

Corrections:

4

Adjustment (a)

(3,200.00)

(3,200.00)

0.00

(3,200.00)

5

Adjustment (b)

6

Adjustment (c)

7

Adjustment (d)

8

Corrected amounts

. Journalize the entries on April 30 to record the omitted adjustments. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

2. Determine the correct amount of net income for April and the total assets, liabilities, and owners equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment using the columnar table provided. Adjustment (a) is presented as an example. (Note: Use a minus sign (-) to indicate a decrease. If there is no amount or an amount is zero, enter "0".)

Corrected Amounts

1		Net Income	Total Assets =	Total Liabilities +	Total Owners Equity
2	Reported amounts	$102,000.00	$736,400.00	$284,750.00	$451,650.00
3	Corrections:
4	Adjustment (a)	(3,200.00)	(3,200.00)	0.00	(3,200.00)
5	Adjustment (b)
6	Adjustment (c)
7	Adjustment (d)
8	Corrected amounts