Adjusting entries and errors
At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney:
| Net income for August | $112,500 |
| Total assets at August 31 | 650,000 |
| Total liabilities at August 31 | 225,000 |
| Total stockholders’ equity at August 31 | 425,000 |
In preparing the financial statements, adjustments for the following data were overlooked:
1. Unbilled fees earned at August 31, $31,900.
2. Depreciation of equipment for August, $7,500.
3. Accrued wages at August 31, $5,200.
4. Supplies used during August, $3,000.
Instructions
1. Journalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for August and the total assets, liabilities, and stockholders’ equity at August 31. 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. Adjustment (a) is presented as an example.
| Net Income | Total Assets | = | Total Liabilities | + | Total Stockholders’ Equity | |
| Reported amounts | $112,500 | $650,000 | $225,000 | $425,000 | ||
| Corrections: | ||||||
| Adjustment (a) | +31,900 | +31,900 | 0 | +31,900 | ||
| Adjustment (b) | ____ | ____ | ____ | ____ | ||
| Adjustment (c) | ____ | ____ | ____ | ____ | ||
| Adjustment (d) | ____ | ____ | ____ | ____ | ||
| Corrected amounts | ____ | ____ | ____ | ____ |
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…