On December 31, 2022, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and owner's equity $80,000. The incorrect income statement showed net income of $70,000. The data for the three adjusting entries were: 1. 2. 3. Salaries and wages amounting to $10,000 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. Rent payments of $8,000 was received for two months in advance on December 1. The entire amount was credited to Unearned Rent Revenue when paid. Depreciation expense for 2022 is $9,000.

On December 31, 2022. Waters Company prepared an incemestatement and balance sheet, but failed to take into account thiee adjustingentries. The batance sheet showed total assets $150,000, fotal lisbilities $70,000, and owner's equify $80000. The incorrect incoese itatement thowed net incoene d 570.000 The data for the three sdjusting entries were: 1. Salaries and wazes ainchuning 10$10,000 for the last 2 days in December were not paid and not recorded. The next payrolt wis be in January 2. Rent poymentr of $0.000 was received for two months in advance on December 1 . The entire amount wascredited to Unearned Rent Rewnue when paid 3. Depreciation expense for 2022 is 59,000