On December 31, 2016, Madison Company prepared an income statement and a balance sheet. In preparing the adjusting entries at year-end, Madison failed to record the adjusting entry for wages earned by employees, but not yet paid, amounting to $5,000 for the last four days of the year. The income statement reported net income of $52,000. The balance sheet reported total assets of $254,000, total liabilities of $170,000, and stockholders' equity of $84,000.
Required:
Complete the following tabulation to show the correct amounts for the financial statements (ignore income taxes).

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2016, Madison Company prepared an income statement and a balance sheet. In preparing the adjusting entries at year-end, Madison failed to record the adjusting entry for wages earned by employees, but not yet paid, amounting to $5,000 for the last four days of the year. The income statement reported net income of $52,000. The balance sheet reported total assets of $254,000, total liabilities of $170,000, and stockholders' equity of $84,000.
Required:
Complete the following tabulation to show the correct amounts for the financial statements (ignore income taxes).

On December 31, 2016, Madison Company Prepared an Income Statement