At the end of the first month of operations, the Bradley Company's accountant prepared financial statements that showed the following amounts: Assets $60,000 Liabilities 20,000 Stockholders' equity 40,000 Net income 9,000 In preparing the statements, the accountant overlooked the following items: a. Depreciation for the month, $1,000 b. Service revenue earned but not recorded at month-end, $1,500. c. Employee wages earned but unpaid at month-end, $250. Determine the correct amounts of assets, liabilities, and stockholders' equity at month-end and net income for the month. Note: Use negative signs to indicate a decrease to arrive at the corrected amounts.

At the end of the first month of operations, the Bradley Company's accountant prepared financial statements that showed the following amounts: Assets $60,000 Liabilities 20,000 Stockholders' equity 40,000 Net income 9,000 In preparing the statements, the accountant overlooked the following items: a. Depreciation for the month, $1,000 b. Service revenue earned but not recorded at month-end, $1,500. c. Employee wages earned but unpaid at month-end, $250. Determine the correct amounts of assets, liabilities, and stockholders' equity at month-end and net income for the month. Note: Use negative signs to indicate a decrease to arrive at the corrected amounts.

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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