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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:
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 | $120,000 |
Total assets at April 30 | 750,000 |
Total liabilities at April 30 | 300,000 |
Total owners equity at April 30 | 450,000 |
In preparing the financial statements, adjustments for the following data were overlooked:
Supplies used during April, $2,750. | |
Unbilled fees earned at April 30, $23,700. | |
Depreciation of equipment for April, $1,800. | |
Accrued wages at April 30, $1,400. |
Required:
1. | Journalize the entries on April 30 to record the omitted adjustments. Refer to the Chart of Accounts for exact wording of account titles. |
2. | Determine the correct amount of net income for April and the total assets, liabilities, and owners equity at April 30 |
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