A Company Issued Financial Statements for the Year Ended December

question 216

Essay

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:
$\begin{array}{|l|l|l|l|l|}\hline& \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Net Income }\\\hline \text { Reported amounts } & \$ 350,000 & \$ 200,000 & \$ 150,000 & \$ 70,000 \\\hline \begin{array}{l}\text { Add (subtract) to correct for } \\\text { item }\end{array} & & & & \\\hline \text { A } & & & & \\\hline \text { B } & & & & \\\hline \text { C } & & & & \\\hline \text { D } & & & & \\\hline \text { E } & & & & \\\hline \text { Corrected amounts } & \$ & \$ & \$ & \$\\\hline \end{array}$

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Definitions:

Marriage

A legally or formally recognized union of two people as partners in a personal relationship, historically institutionally recognized as between a man and a woman.

Delaying Marriage

The decision to postpone entering into a legally recognized union or partnership until a later age.

Coworkers

Individuals who work together in the same organization or workplace.

Spouse

A partner in a marriage or civil union, legally bound to another individual, sharing household, familial, and social responsibilities.