At the end of August, the first month of operations, the following selected data weretaken from the financial statements of Tucker Jacobs, an attorney:Net income for AugustTotal assets at August 31Total liabilities at August 31Total owner's equity at August 31$112,500650,000225,000425,000In preparing the financial statements, adjustments for the following data were overlooked:• Unbilled fees earned at August 31, $31,900.Depreciation of equipment for August, $7,500.• Accrued wages at August 31, $5,200.• Supplies used during August, $3,000.Instructions1. Journalize the entries to record the omitted adjustments.2. Determine the correct amount of net income for August and the total assets, liabilities,and owner's equity at August 31. In addition to indicating the corrected amounts, in-dicate the effect of each omitted adjustment by setting up and completing a columnartable similar to the following. The first adjustment is presented as an example.NetTotalAssetsTotalLiabilitiesTotal Owner'sIncomeEquityReported amounts$112,500$650,000$225,000$425,000Corrections:Unbilled fees earned+31,900+31,900+31,900Equipment depreciationAccrued wagesSupplies usedCorrected amounts

Journalize the entries to record the omitted adjustments.

Answered: At the end of August, the first month…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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