On December 31, 2010, Speedy Company prepared an income statement and balance sheet and failed to take into account three adjusting entries. The incorrect income statement showed net income of $40,000. The balance sheet showed total assets, $120,000; total liabilities, $45,000; and owner's equity, $75,000.
The data for the three adjusting entries were:
(1) Depreciation of $9,000 was not recorded on equipment.
(2) Wages amounting to $8,000 for the last two days in December were not paid and not recorded. The next payroll will be in January.
(3) Rent of $14,000 was paid for two months in advance on December 1. The entire amount was debited to Rent Expense when paid.
Instructions
Complete the following tabulation to correct the financial statement amounts shown (indicate deductions with parentheses):

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2010, Speedy Company prepared an income statement and balance sheet and failed to take into account three adjusting entries. The incorrect income statement showed net income of $40,000. The balance sheet showed total assets, $120,000; total liabilities, $45,000; and owner's equity, $75,000.
The data for the three adjusting entries were:
(1) Depreciation of $9,000 was not recorded on equipment.
(2) Wages amounting to $8,000 for the last two days in December were not paid and not recorded. The next payroll will be in January.
(3) Rent of $14,000 was paid for two months in advance on December 1. The entire amount was debited to Rent Expense when paid.
Instructions
Complete the following tabulation to correct the financial statement amounts shown (indicate deductions with parentheses):

On December 31, 2010, Speedy Company Prepared an Income Statement