Reference no: EM131137909
At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney:
|
Net income for April
|
$100,650
|
|
Total assets at April 30
|
732,600
|
|
Total liabilities at April 30
|
316,650
|
|
Total stockholders' equity at April 30
|
415,950
|
In preparing the financial statements, adjustments for the following data were overlooked:
a. Supplies used during April, $3,050.
b. Unbilled fees earned at April 30, $24,300.
c. Depreciation of equipment for April, $2,200.
d. Accrued wages at April 30, $1,700.
Required:
1. Journalize the entries on April 30 to record the omitted adjustments. Refer to the Chart of Accounts for exact wording of account titles.
2. Determine the correct amount of net income for April and the total assets, liabilities, and stockholders' equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment using the columnar table provided. Adjustment (a) is presented as an example. (Note: Use a minus sign (-) to indicate a decrease. If there is no amount or an amount is zero, enter "0".)
Corrected Amounts
|
1
|
|
Net Income
|
Total Assets =
|
Total Liabilities +
|
Total Stockholders' Equity
|
|
2
|
Reported amounts
|
$100,650.00
|
$732,600.00
|
$316,650.00
|
$415,950.00
|
|
3
|
Corrections:
|
|
|
|
|
|
4
|
Adjustment (a)
|
(3,050.00)
|
(3,050.00)
|
0.00
|
(3,050.00)
|
|
5
|
Adjustment (b)
|
|
|
|
|
|
6
|
Adjustment (c)
|
|
|
|
|
|
7
|
Adjustment (d)
|
|
|
|
|
|
8
|
Corrected amounts
|
|
|
|
|
|
Marriage license applications chosen at random
: Among 500 marriage license applications chosen at random in a given year, there were 48 in which the woman was at least one year older than the man and among 400 marriage license applications chosen at random six years later, there were 68 in whic..
|
|
Interval for the true variance of the skull length
: The length of the skulls of 10 fossil skeletons of an extinct species of bird has a mean of 5.68 cm and a standard deviation of 0.29 cm. Assuming that such measurements are normally distributed, find a 95% confidence interval for the mean length ..
|
|
What is the maximum allowed in checkable deposits
: What is the maximum allowed in checkable deposits? - What are the required reserves? - By how much can this bank expand the money supply in checkable deposits?
|
|
Complete the worksheet by extending
: Prepare an income statement, owner's equity statement, and a classified balance sheet. $10,000 of the notes payable become due in 2011. B. Porter did not make any additional investments in the business during 2010.
|
|
Determine the correct amount of net income for april
: Determine the correct amount of net income for April and the total assets, liabilities, and stockholders' equity at April 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment using the columnar table ..
|
|
Describe the differences among the three key groups of rocks
: Explain why sedimentary rocks are of particular importance to geotechnical engineers.
|
|
Thomas magnum began operations as a private investigator
: Thomas Magnum began operations as a private investigator on January 1, 2010. The trial balance columns of the worksheet for Thomas Magnum, P.I. at March 31 are as follows.
|
|
What are the agents responsible for weathering of rocks
: What are the agents responsible for weathering of rocks?
|
|
Percentage of impurities in the given brand of peanut butter
: With reference to Exercise 32, construct a 90% confidence interval for the standard deviation of the population sampled, that is, for the percentage of impurities in the given brand of peanut butter.
|