On $31$ December $2023,$ Lance Ltd prepared an income statement and a statement of financial position but failed to take into account three adjusting entries.

The incorrect income statement showed a profit of $$40,000.$

The statement of financial position showed total assets, $$120,000$; total liabilities, $$50,000$; and equity, $$70,000.$

The data for the three adjusting entries were:

Depreciation of $$7,000$ was not recorded on equipment.

Wages amounting to $$8,000$ for the last two days in December were not paid and not recorded. The next payroll will be in January.

Rent of $$12,000$ was paid for two months in advance on $31$ December. The entire amount was debited to Rent Expense when paid.

Select the correct profit, total assets, liabilities and equity after these adjusting entries:

Question $10$Select one:

a$.$

Profit Total Assets Total Liabilities Equity

$$37,000$ $$125,000$ $$58,000$ $$67,000$

b$.$

Profit Total Assets Total Liabilities Equity

$$13,000$ $$139,000$ $$42,000$ $$97,000$

c$.$

Profit Total Assets Total Liabilities Equity

$$40,000$ $$132,000$ $$62,000$ $$70,000$

d$.$

Profit Total Assets Total Liabilities Equity

$$29,000$ $$115,000$ $$62,000$ $$53,000$

e$.$

Profit Total Assets Total Liabilities Equity

$$43,000$ $$121,000$ $$70,000$ $$51,000$