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On December 31, Ferron Company prepared an income statement and balance sheet and missed the following information. The income statement, prepared on this incorrect basis,

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On December 31, Ferron Company prepared an income statement and balance sheet and missed the following information. The income statement, prepared on this incorrect basis, reflected pretax income of $69,000. The balance sheet on this incorrect basis reflected total assets, $166,000; total liabilities, $84,000; and stockholders' equity, $82,000. The data follows: a. Wages amounting to $38,000 for the last three days of December were not paid and not recorded (the next payroll will be at the beginning of next year). b. Depreciation of $9,000 for the year on equipment that cost $166,000 was not recorded. c. Rent revenue of $8,100 was collected on December 1 of the current year for office space for the period December 1 to February 28 of the next year. The $8,100 was credited in full to Unearned Rent Revenue when collected. d. Income taxes were not recorded. The income tax rate for the company is 30 percent. Required: Complete the following tabulation to correct the financial statements for the effects of the four errors if necessary. (Amounts to be deducted should be indicated with a minus sign.) Items Net Income Total Assets Total Liabilities $ 84,000 Stockholders' Equity $ 82,000 $ 69,000 $ 166,000 Balances reported Additional adjustments: Wages Depreciation a. b c. Rent revenue Adjusted balances d. Income taxes Correct balances

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