A Company Issued Financial Statements for the Year Ended December

question 70

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

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Definitions:

Economic Nation

A collective term referring to a country or state and its economic activities, system, and performance.

United States Depression

A period of severe economic downturn and high unemployment in the United States, with the most famous being the Great Depression of the 1930s.

Output

Output refers to the total quantity of goods or services produced by a firm, industry, or economy within a given period.

Roaring Twenties

A period in the 1920s characterized by rapid economic growth, technological innovation, and cultural shifts in the United States and Europe, often associated with prosperity and social change.