On 30 June 2020, Wick Ltd prepared an income statement and a statement of financial position but failed to take into account several 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 following adjustments need to be made:

(1) Depreciation of $7000 was not recorded on equipment.

(2) Wages amounting to $8000 for the last two days in June were not paid and not recorded. The next payroll will be in July.

(3) Rent of $12 000 was paid for two months in advance on 1 June. The entire amount was debited to Rent Expense when paid.

Required:

a)Prepare the adjusting entries at 30 June 2020, with narrations.

b)Complete the following tabulation to correct the financial statement amounts shown (indicate deductions with a bracket)

Item Profit Total assets Total liabilities Equity Incorrect $40 000 $120 000 $50 000 $70 000 balances Effects of: Depreciation Wages Rent Correct balances