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Please show detailed answers 2.00 points On December 31, 2015, Alan and Company prepared an income statement and balance sheet but failed to take into
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2.00 points On December 31, 2015, Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting jounal entries. The income statement, prepared on this incorrect basis, reported income before income tax of S35,000. The balance sheet (before the effect of income taxes) reflected total assets, $100,000;totllabilities, S45,000; and stockholders' equity, $55,000. The data for the four adjusting journal entries follow: a. Amortization of $9,000 for the year on software was not recorded b. Salaries and Wages amounting to $18,000 for the last three days of December 2015 were not paid and not recorded (the next payroll will be on January 10, 2016). c. Rent revenue of $6,300 was collected on December 1, 2015, for office space for the three month period December 1, 2015, to February 28, 2016. The $6,300 was credited in full to Uneamed Revenue when collected. Income taxes were not recorded. The income tax rate for the company is 25%. d. Required Complete the following table to show the effects of the four adjusting journal entries. (Negative amounts should be indicated by a minus sign.) Items Net Income Total Assets Total LiabilitiesStockholders' Equity Amounts reported a. Effect of amortization b. Effect of salaries and wages c. Effect of rent revenue Adjusted balances d. Effect of income tax Correct amounts 35,000$ 100,000S 45,000 S 55,000Step by Step Solution
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