Answer to Question #269330 in Accounting for Drs

Question

1. A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries:

A. Accrued service fees earned of $2,200.

B. Depreciation expense of $8,000.

C. Portion of office supplies (an asset) used $3,100.

D. Accrued salaries of $5,200.

E. Revenues of $7,200, originally recorded as unearned, have been earned by the end of the year.

Determine the correct amounts for the December 31 financial statements by completing the following table:

 

Assets Liabilities        Equity Net Income

Reported amounts............... $350,000 $200,000   $150,000 $70,000

Add (subtract) to

correct for item:

A…………………………..

B…………………………..

C…………………………..

D…………………………..

E…………………………..

Corrected amounts……… $ $                      $ $

Answer 1

The answer is provided in the table below