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On December 31, 2021, Colada Ltd. prepared a statement of income and statement of financial position, but failed to take into account three adjusting
On December 31, 2021, Colada Ltd. prepared a statement of income and statement of financial position, but failed to take into account three adjusting journal entries. Before correcting this omission, the statement of income reported net income of $91,000 and the statement of financial position reported total assets $171,000, total liabilities $72,000, and total shareholders' equity $99,000. Information about the three missing adjusting entries is as follows: 1. Salaries owed amounting to $9,900 for the last two days worked in December were not accrued. The next payroll will be in January. 2. Rent of $8,100 was received for two months in advance on December 1. The entire amount was credited to Deferred Revenue when received. 3. Depreciation of $9,900 was not recorded. Complete the following table to correct the financial statement amounts shown. (Indicate deductions with parentheses or by using a minus sign.) Incorrect balances Net Income $91,000 Total Assets $171,000 Total Liabilities $72,000 Total Share
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