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	$100,650
Total assets at April 30	732,600
Total liabilities at April 30	316,650
Total owners equity at April 30	415,950

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

	Supplies used during April, $3,050.
	Unbilled fees earned at April 30, $24,300.
	Depreciation of equipment for April, $2,200.
	Accrued wages at April 30, $1,700.

Required:

1.

Journalize the entries on April 30 to record the omitted adjustments. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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 by setting up and completing a columnar table similar to the following. The adjustment for supplies used 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".)

1		Net Income	Total Assets =	Total Liabilities +	Total Owners Equity
2	Reported amounts	$100,650.00	$732,600.00	$316,650.00	$415,950.00
3	Corrections:
4	Supplies used	(3,050.00)	(3,050.00)	0.00	(3,050.00)
5	Unbilled fees earned
6	Equipment depreciation
7	Accrued wages
8	Corrected amounts

Chart of Accounts

CHART OF ACCOUNTS

Shelby Crawford

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Supplies
15	Land
16	Equipment
17	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Wages Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Wages Expense
52	Utilities Expense
53	Advertising Expense
54	Repairs Expense
56	Depreciation Expense
57	Insurance Expense
58	Supplies Expense
59	Miscellaneous Expense

Journal

1. 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

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9

Final Question

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 by setting up and completing a columnar table similar to the following. The adjustment for supplies used 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	$100,650.00	$732,600.00	$316,650.00	$415,950.00
3	Corrections:
4	Supplies used	(3,050.00)	(3,050.00)	0.00	(3,050.00)
5	Unbilled fees earned
6	Equipment depreciation
7	Accrued wages
8	Corrected amounts