On December 31, 2024, Spruce Ltd. prepared a statement of income and statement of financial position, but failed to take into account three adjusting journal entries. Before correcting this omission, the statement of income reported net income of $98,000 and the statement of financial position reported total assets $185,000, total liabilities $66,000, and total shareholders' equity $119,000. Information about the three missing adjusting entries is as follows: Salaries owed amounting to $10,500 for the last two days worked in December were not accrued. The next payroll will be in January. 1. 2 3. Rent of $8.500 was received for two months in advance on December 1. The entire amount was credited to Deferred Revenue when received. Depreciation of $9,300 was not recorded.
On December 31, 2024, Spruce Ltd. prepared a statement of income and statement of financial position, but failed to take into account three adjusting journal entries. Before correcting this omission, the statement of income reported net income of $98,000 and the statement of financial position reported total assets $185,000, total liabilities $66,000, and total shareholders' equity $119,000. Information about the three missing adjusting entries is as follows: Salaries owed amounting to $10,500 for the last two days worked in December were not accrued. The next payroll will be in January. 1. 2 3. Rent of $8.500 was received for two months in advance on December 1. The entire amount was credited to Deferred Revenue when received. Depreciation of $9,300 was not recorded.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2024, Spruce Ltd. prepared a statement of income and statement of financial position, but failed to take into account
three adjusting journal entries. Before correcting this omission, the statement of income reported net income of $98,000 and the
statement of financial position reported total assets $185,000, total liabilities $66,000, and total shareholders' equity $119,000.
Information about the three missing adjusting entries is as follows:
Salaries owed amounting to $10,500 for the last two days worked in December were not accrued. The next payroll will be
in January.
1
2.
3.
Rent of $8,500 was received for two months in advance on December 1. The entire amount was credited to Deferred
Revenue when received.
Depreciation of $9,300 was not recorded.
Complete the following table to correct the financial statement amounts shown. (Enter negative amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
Net Income
$98,000
Total Assets
$185,000
IM
Total Liabilities
$66,000
Total Shareholders' Equity
$119,000
I
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