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Question: On December 31, 2017, Waters Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $150,000, total liabilities $70,000, and stockholders' equity $80,000. The incorrect income statement showed net income of $70,000. The data for the three adjusting entries were:

1. Salaries and wages amounting to $10,000 for the last 2 days in December were not paid and not recorded. The next payroll will be in January.

2. Rent payments of $8,000 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 2017 is $9,000.

Instructions: Complete the following table to correct the financial statement amounts shown (indicate deductions with parentheses).

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92652365

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