Analysis of the Impact of Adjustments on Financial Statements At the end of the first month of operations, the Stephan Company$’$s accountant prepared financial statements that showed the following amounts:

Assets $$60,000$

Liabilities $20,000$

Stockholders' Equity $40,000$

Net Income $9,000$

In preparing the statements, the accountant overlooked the following items:

a$.$ Depreciation for the month. $$925$

b$.$ Service revenue earned but unbilled at month$-$end. $1,500$

c$.$ Employee wages earned but unpaid at month$-$end. $410$

Determine the correct amounts of assets, liabilities and stockholders' equity at month$-$end and net income for the month.

 

Answer rating: 100% (QA)

To correct the financial statements for the adjustments provided we need to consider the impact of e... View the full answer