Chapter 3 eBook Adjustments and Errors At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, P.C.: Net income for May $121,300 Total assets at May 31 654,000 Total liabilities at May 31 216,000 Total stockholders' equity at May 31 438,000 In preparing the financial statements, adjustments for the following data were overlooked: a. Unbilled fees earned at May 31, $8,840. b. Depreciation of equipment for May, $4,000. C. Accrued wages at May 31, $2,830. d. Supplies used during May, $2,480. Instructions: Determine the correct amount of net income for May and the total assets, liabilities, and stockholders' equity at May 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table below. Enter account decreases as negative amounts. If an effect is zero, enter "0". Adjustment (a) is presented as an example. Net Income Total Assets Total Liabilities Total Stockholders' Equity Reported amounts: $121,300 $654,000 $216,000 $438,000 Corrections: Adilctmont 2) Oon oon Total stockholders' equity at May 31 438,000 In preparing the financial statements, adjustments for the following data were overlooked: a. Unbilled fees earned at May 31, $8,840. b. Depreciation of equipment for May, $4,000. C. Accrued wages at May 31, $2,830. d. Supplies used during May, $2,480. Instructions: Determine the correct amount of net income for May and the total assets, liabilities, and stockholders' equity at May 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table below. Enter account decreases as negative amounts. If an effect is zero, enter "0". Adjustment (a) is presented as an example. Net Income Total Assets Total Liabilities + Total Stockholders' Equity Reported amounts: $121,300 $654,000 $216,000 $438,000 Corrections: Adjustment (a) 8,840 8,840 0 8,840 Adjustment (b) Adjustment (c) Adjustment (d) Corrected amounts $