Question: Current Attempt in Progress On December 31, 2025, Whispering Winds Company prepared an income statement and balance sheet, but failed to take into account
Current Attempt in Progress On December 31, 2025, Whispering Winds Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $120,000, total liabilities $56,000, and stockholders' equity $64,000. The incorrect income statement showed net income of $56,000. The data for the three adjusting entries were: 1. Salaries and wages amounting to $8,000 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent payments of $6,400 was received for two months in advance on December 1. The entire amount was credited to Unearned Rent Revenue when paid. 3. Depreciation expense for 2025 is $7,200. Complete the following table to correct the financial statement amounts shown (indicate deductions with parentheses). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 5 ges Net Income Total Assets Total Liabilities Stockholders' Equity $56,000 $120,000 $56,000 $64,000 $ $ $
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To correct the financial statement amounts we need to consider each of the three adjusting entries Salaries and Wages Payable not paid and not recorde... View full answer
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