E4-18 Recording the Effects of Adjusting Entries and Reporting a Corrected Income Statement and Balance Sheet LO4-1, 4-2 [The following information applies to the questions displayed below.] On December 31, the bookkeeper for Grillo Company prepared the following income statement and balance sheet summarized here but neglected to consider three adjusting entries. Data on the three adjusting entries follow: a. Rent revenue of $2,400 earned in December of the current year was neither collected nor recorded. b. Depreciation of $4,100 on the equipment for the current year was not recorded. C. Income tax expense of $4,500 for the current year was neither paid nor recorded. References Section Break E4-18 Recording the Effects of Adjusting Entries and Reporting a Corrected Income Statement and Balance Sheet L04-1, 4-2 E4-18 Part 2 2. Complete the two columns to the right in the following tabulation to show the correct amounts on the income statement and balance sheet. (Enter deductions with a minus sign.) Effects of Corrected Income Statement As Prepared Adjusting Entries Amounts Revenues $ 95.000 Expenses (71,000) Income tax expense Net income S 24.000 $ 0 0 Balance Sheet As Prepared Effects of Adjusting Entries Corrected Amounts $ 40,000 26,000 Assets Cash Accounts receivable Rent receivable Equipment Accumulated depreciation 69,000 (6,000) $ 129,000 $ 0$ 0 $ 18,000 Liabilities Accounts payable Income taxes payable Stockholders' Equity Common stock Additional paid-in capital Retained eamings 7,500 22,500 81,000 $ 129,000 $ 0 $ 0