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At the end of the first month of operations, the Bradley Company's accountant prepared financial statements that showed the following amounts: Assets Liabilities Stockholders' equity
At the end of the first month of operations, the Bradley Company's accountant prepared financial statements that showed the following amounts: Assets Liabilities Stockholders' equity Net income $270,000 90,000 180,000 40,500 In preparing the statements, the accountant overlooked the following items: a. Depreciation for the month, $4,500 b. Service revenue earned but not recorded at month-end, $6,750. c. Employee wages earned but unpaid at month-end, $1,125. Determine the correct amounts of assets, liabilities, and stockholders' equity at month-end and net income for the month. Note: Use negative signs to indicate a decrease to arrive at the corrected amounts. Liabilities Stockholders' Equity Net Income Assets Reported amounts $270,000 $90,000 Depreciation 0 0 Unrecorded revenue 0 0 Accrued wages 0 0 Corrected amounts $ 0 $ 0 $ $180,000 O O $0 $40,500
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