Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

On December 31,20XX, Sandhill Co. prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed

image text in transcribedimage text in transcribedimage text in transcribed On December 31,20XX, Sandhill Co. prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $155,000, total liabilities $72,500, and shareholders' equity $82,500. The incorrect income statement showed net income of $75,800. The data for the three adjusting entries were: 1. Salaries and wages amounting to $11,700 for the last two days in December were not paid and not recorded. The next payroll will be in January. 2. Rent payments of $10,600 was received for 2 months in advance on December 1 . The entire amount was credited to Unearned Rent Revenue when paid. 3. Depreciation expense for 20XX is $5,950. 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).) Incorrect balances Effects of: Salaries and Wages Rent Revenue Depreciation Correct balances

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions