Exercise 4-15 On December 31, 2017, Pharoah Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $168,000, total liabilities $78,400, and stockholders' equity $89,600. The incorrect income statement showed net income of $78,400. The data for the three adjustments were: 1. Salaries and wages amounting to $11,200 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent payments of $8,960 was received for two months in advance on December 1. The entire amount was recorded as Unearned Rent Revenue when received. 3. Depreciation expense for 2017 is $10,080. Complete the following table to correct the financial statement amounts shown indicate deductions with parentheses). Item Incorrect balances Effects of: Net Income $78,400 Total Assets $168,000 Total Liabilities $78,400 Stockholders' Equity $89,600 Salaries and Wages Rent Revenue Depreciation Correct balances