Faubert Company began operations on January 1, Year 1. The company has drafted its Year 5 comparative financial statements. Adjusting Journal Entries have been recorded; the Year 5 books are still open. Faubert will be audited for the first time. Using the following corrected JE, correct and restate Year 5/Year 4 Faubert comparative income statement and balance sheet.

dr. Acc Dep	3,500
cr. RE		3,500
dr. Dep Exp	5,000
cr. Acc Dep		5,000
dr. Inv	5,000
cr. RE		5,000
dr. PP Ins	16,500
cr. RE		16,500
dr, Ins Exp	6,000
cr. PP Ins		6,000
No CJE
dr. RE	2,000
cr. Gain/Sale of Land		2,000
dr. Rent Payable	40,000
cr. Unearned Rev		40,000
dr. Unearned Rev	30,000
cr. RE		20,000
cr. Rev		10,000
dr. Rev	10,000
cr. RE		10,000
dr. Gain on exchange	2,000
cr. Equip-Machine		2,000
No CJE

Faubert Company Balance Sheets December 31, Year 5 December 31 Year 4 Assets Current Assets Cash and Equivalents Receivables (net of allowance) Inventories Prepaid Expenses and Other Assets Total Current Assets $580,100 220,500 85,000 30,300 915,900 $340,000 196,000 75,000 22,500 633,500 Land Plant and Machines, Net Other Assets Total Assets 72,000 320,000 28,300 $1,336,200 90,000 275,000 29.800 $1,028,300 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Rent Payable Unearned Revenue Wages Payable Current Portion of Long-Term Debt Total Current Liabilities $59,000 61,000 4,000 17,000 10,000 151,000 $10,400 43,000 3,000 2,400 -0- $58,800 Long-Term Debt Total Liabilities 30,000 $181,000 40,000 98.800 Shareholders' Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock (at cost) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 100,000 792,000 314,100 (50,900) 1,155,200 $1,336,200 100,000 749,000 131,400 (50,900) 929,500 $1.028,300 Faubert Company Income Statements For Year Ended December 31 Year 5 For Year Ended December 31 Year 4 Sales Cost of Goods Sold Gross Profit $850,000 (340,000) $510,000 $800,000 (400,000) $400,000 Operating Expenses: Insurance (9,000) (29,000) Wages Depreciation (229,000) (140,000) (230,000) (130,000) Income from Operations $132,000 $11,000 Other Revenues and Expenses: Interest Revenue Bad Debt Expense Rent Revenue Gain on Exchange of Machine 28,000 (4,300) 23,000 4,000 30,000 (4,400) 25,000 -0- Net Income $182,700 $61,600