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Adjustments and Errors

At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, P.C.:

Net income for May	$149,100
Total assets at May 31	826,000
Total liabilities at May 31	273,000
Total stockholders' equity at May 31	553,000

In preparing the financial statements, adjustments for the following data were overlooked:

Unbilled fees earned at May 31, $7,300.

Depreciation of equipment for May, $3,300.

Accrued wages at May 31, $2,340.

Supplies used during May, $2,040.

Instructions:

Determine the correct amount of net income for May and the total assets, liabilities, and stockholders' equity at May 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table below. Enter account decreases as negative amounts. If an effect is zero, enter "0". Adjustment (a) is presented as an example.

	Net Income	Total Assets	=	Total Liabilities	+	Total Stockholders' Equity
Reported amounts:	$149,100	$826,000		$273,000		$553,000
Corrections:
Adjustment (a)	7,300	7,300		0		7,300
Adjustment (b)	fill in the blank 1	fill in the blank 2		fill in the blank 3		fill in the blank 4
Adjustment (c)	fill in the blank 5	fill in the blank 6		fill in the blank 7		fill in the blank 8
Adjustment (d)	fill in the blank 9	fill in the blank 10		fill in the blank 11		fill in the blank 12
Corrected amounts	$fill in the blank 13	$fill in the blank 14		$fill in the blank 15		$fill in the blank 16