At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney:
Net income for April.................................................................. $120,000
Total assets at April 30 ...............................................................750,000
Total liabilities at April 30 ............................................................300,000
Total stockholders€™ equity at April 30 ..........................................450,000
In preparing the financial statements, adjustments for the following data were overlooked:
€¢ Supplies used during April, $2,750.
€¢ Unbilled fees earned at April 30, $23,700.
€¢ Depreciation of equipment for April, $1,800.
€¢ Accrued wages at April 30, $1,400.

Instructions
1. Journalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for April and the total assets, liabilities, and stockholders€™ equity at April 30. 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. The adjustment for supplies used is presented as an example.

Transcribed Image Text:

Total Liabilities + Total Stockholders' Total Assets Net Income Equity Reported amounts Corrections: Supplies used Unbilled fees earned Equipment depreciation Accrued wages Corrected amounts $300,000 $120,000 $750,000 $450,000 (2,750) (2,750) (2,750)