Question

Adjusting Entries and Errors At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: Net income for August $176,200 Total assets at August 31 966,000 Total liabilities at August 31 319,000 Total owner's equity at August 31 647,000 In preparing the financial statements, adjustments for the following data were overlooked: • Unbilled fees earned at August 31, $9,160. • Depreciation of equipment for August, $4,100. • Accrued wages at August 31, $2,930. • Supplies used during August, $2,560. Required: 1. Journalize the entries to record the omitted adjustments. Aug. 31 31 31 31

Answer 1

1)	Journals
	Particulars			Debit	Credit
a)	Accounts Receivable			$ 9,160.00
	To Fees Earned				$ 9,160.00
b)	Depreciation			$ 4,100.00
	To Accumulated Depreciation				$ 4,100.00
c)	Wages Expense			$ 2,930.00
	To Wages Payable				$ 2,930.00
d)	Supplies Expense			$ 2,560.00
	To Supplies				$ 2,560.00

2)
	Net Income	Total Assets	=	Total Liabilities	+	Total Owner's Equity
Reported amounts	$ 176,200.00	$ 966,000.00		$       319,000.00		$              647,000.00
Corrections
Unbilled fees earned	$     9,160.00	$     9,160.00		$                        -		$                   9,160.00
Equipment depreciation	$    (4,100.00)	$    (4,100.00)		$                        -		$                 (4,100.00)
Accrued wages	$    (2,930.00)	$                 -		$           2,930.00		$                 (2,930.00)
Supplies used	$    (2,560.00)	$    (2,560.00)		$                        -		$                 (2,560.00)
Corrected amounts	$ 175,770.00	$ 968,500.00		$       321,930.00		$              646,570.00

Is this correct?