E$4\mathrm{.}12($LO $2,3)($Correct for missing adjusting entries.$)$ On December $31,2024,$ Water Ltd$.$ prepared a statement of income and statement of financial position, but failed to take into account three adjusting journal entries. Before correcting this omission, the statement of income reported net income of $$90,000$ and the statement of financial position reported total assets $$170,000,$ total liabilities $$70,000,$ and total shareholders' equity $$100,000.$

Information about the three missing adjusting entries is as follows:

Salaries owed amounting to $$10,000$ for the last two days worked in December were not accrued. The next payroll will be in January.

Rent of $$8,000$ was received for two months in advance on December $1.$ The entire amount was credited to Deferred Revenue when received.

Depreciation of $$9,000$ was not recorded.

Instructions

Complete the following table to correct the financial statement amounts shown. $($Indicate deductions with parentheses.$)$

Incorrect balances

$\frac{\text{N}\text{e}\text{t}\text{I}\text{n}\text{c}\text{o}\text{m}\text{e}}{\text{\$}90,000}$

Total Assets

Adjustments:

Salaries

Rent

Depreciation

Correct balances