Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2022, Cullumber Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance

image text in transcribedimage text in transcribed

On December 31, 2022, Cullumber Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $141,000, total liabilities $65,800, and stockholders' equity $75,200. The incorrect income statement showed net income of $65,800. The data for the three adjusting entries were: 1. 2. 3. Salaries and wages amounting to $9.400 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. Rent payments of $7,520 was received for 2 months in advance on December 1. The entire amount was credited to Unearned Rent Revenue when paid. Depreciation expense for 2022 is $8,460. Complete the following table to correct the financial statement amounts shown (indicate deductions with parentheses). Item Net Income Total Assets Total Liabilities Stockh Incorrect balances $65,800 $141,000 $65,800 Effects of: Salaries and Wages 65800 114000 Rent Revenue Depreciation Correct balances eTextbook and Media S $ Attempte

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

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

5th edition

978-1259728877, 1259728870, 978-1259565403

More Books

Students also viewed these Accounting questions