Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 2022, Wildhorse Co. prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed
On December 31, 2022, Wildhorse Co. prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $129,000, total liabilities $60,200, and stockholders' equity $68,800. The incorrect income statement showed net income of $60,200. The data for the three adjustments were: 1. 2. Salaries and wages amounting to $8,600 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. Rent payments of $6,880 were received for two months in advance on December 1. The entire amount was recorded as Unearned Rent Revenue when received. 3. Depreciation expense for 2022 is $7,740. Complete the following table to correct the financial statement amounts shown. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started