On December 31, 2014, the bookkeeper for Grillo Company prepared the following income statement and balance sheet summarized here but neglected to consider three adjusting entries.

Data on the three adjusting entries follow:
a. Rent revenue of $2,500 earned for December 2014 was neither collected nor recorded.
b. Depreciation of $4,500 on the equipment for 2014 was not recorded.
c. Income tax expense of $5,100 for 2014 was neither paid nor recorded.

Required:
1. Prepare the three adjusting entries that were omitted. Use the account titles shown in the income statement and balance sheet data.
2. Complete the two columns to the right in the preceding tabulation to show the correct amounts on the income statement and balancesheet.

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As Effects of Corrected Amounts Prepared Adjusting Entries Income Statement 97,000 (73,000) Expenses Income tax expense Net income 24,000 Balance Sheet Assets 20,000 22,000 Cash Accounts receivable Rent receivable Equipment Accumulated depreciation 50,000 (10,000 82,000 Liabilities 10,000 Accounts payable Income taxes payable Stockholders' Equity Common stock Additional paid-in capital Retained earnings 10,000 30,000 32,000 82,000