Reference no: EM132875513
Problem - Adjusting entries and errors - At the end of June, the first month of operations, the following selected data were taken from the financial statements of Beth Cato, an attorney:
Net income for June $80,000
Total assets at June 30 500,000
Total liabilities at June 30 200,000
Total owner's equity at June 30 300,000
In preparing the financial statements, adjustments for the following data were overlooked:
a. Supplies used during June, $1,500.
b. Unbilled fees earned at June 30, $18,000.
c. Depreciation of equipment for June, $3,000.
d. Accrued wages at June 30, $1,200.
Required -
1. Journalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for June and the total assets, liabilities, and owner's equity at June 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following.
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