Question

57. A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries A Accrued interest revenue eamed of $1 200 8 Depreciation expense of $4,000. C. Portion of prepaid insurance expired an asset) used $1,100. D. Accrued taxes of $3,200. E Revenues of $5,200originally recorded as uneamed, have been earned by the end of the year Determine the correct amounts for the December 31 financial statements by completing the following table: Assets $350,000 Liabilities $200,000 Equity $150,000 Net Income $70,000 Reported amounts Add (subtract) to correct for tam c . Corrected amountsS S S

Answer 1

	Assets	Liabilities	Equity	Net income
Reported amounts	$350,000	$200,000	$150,000	$70,000
Add (subtract) to correct for item:
A	- 1,200		1,200	1,200
B	- 4,000		- 4,000	- 4,000
C	- 1,100		- 1,100	- 1,100
D		3,200	- 3,200	- 3,200
E		- 5,200	5,200	5,200
Corrected amounts	$343,700	$198,000	$148,100	$68,100

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