A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries:
A. Accrued interest revenue earned of $1,200.
B. 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 $5,200, originally recorded as unearned, have been earned by the end of the year. Determine the correct amounts for the December 31 financial statements by completing the following table:
$\begin{array} { | l c c c c | }
\hline & \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Net Income } \
\hline \begin{array} { l }
\text { Reported } \
\text { amounts }
\end{array} & \$ 350,000 & \$ 200,000 & \$ 150,000 & \$ 70,000 \
\hline \begin{array} { l }
\text { Add (subtract) to } \
\text { correct for item: }
\end{array} & & & & \
\hline
\end{array}$

Question

A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries:
A. Accrued interest revenue earned of $1,200.
B. 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 $5,200, originally recorded as unearned, have been earned by the end of the year. Determine the correct amounts for the December 31 financial statements by completing the following table:
$\begin{array} { | l c c c c | } 
\hline & \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Net Income } \
\hline \begin{array} { l } 
\text { Reported } \
\text { amounts }
\end{array} & \$ 350,000 & \$ 200,000 & \$ 150,000 & \$ 70,000 \
\hline \begin{array} { l } 
\text { Add (subtract) to } \
\text { correct for item: }
\end{array} & & & & \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries:
A. Accrued interest revenue earned of $1,200.
B. 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 $5,200, originally recorded as unearned, have been earned by the end of the year. Determine the correct amounts for the December 31 financial statements by completing the following table:
$\begin{array} { | l c c c c | } 
\hline & \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Net Income } \
\hline \begin{array} { l } 
\text { Reported } \
\text { amounts }
\end{array} & \$ 350,000 & \$ 200,000 & \$ 150,000 & \$ 70,000 \
\hline \begin{array} { l } 
\text { Add (subtract) to } \
\text { correct for item: }
\end{array} & & & & \
\hline
\end{array}$

A Company Issued Financial Statements for the Year Ended December