Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Instructions At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: Net income for April Total assets at April 30 Total liabilities at April 30 Total owner's equity at April 30 $102,000 736,400 284,750 451,650 In preparing the financial statements, adjustments for the following data were overlooked: Supplies used during April, $3,200. Unbilled toes earned at April 30, $22,700. Depreciation of equipment for April, $2,000. Accrued wages at April 30, 51,450. Required: 1. Journalize the entries on April 30 to record the omitted adjustments. Refer to the Chart of Accounts for exact wording of account es 2. Determine the correct amount of net income for April and the total assets, abilities, and owner's equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment using the columnar tablo provided. Adjustment (a) is presented as an example. (Note: Use a minus sign (-) to indicate a decrease. If there is no amount or an amount is zero, antero") Corrected Amounts 1 Net Income Total Assets Total Liabilities Total Owner's Equity $451,650,00 2 Reported amounts $102,000.00 $736,400.00 $284,750.00 3 Corrections (3,200.00) 4 (3,200.00) 0.00 (3,200.00) Supplies used Unbilledfees earned 5 6 Equipment depreciation 7 Accrued wages * Corrected amounts Instructions Journal At 1. Journalize the entries on April 30 to record the omitted adjustments. Refer to the Chart of Accounts for exact wording of accountitles PAGE 10 ACCOUNTING EQUATION JOURNAL EQUITY POST. RIF DEBIT ASSETS LALTIES CREDIT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

8th International Edition

1260570517, 978-1260570519

More Books

Students also viewed these Accounting questions