A Company Issued Financial Statements for the Year Ended December

Essay

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:
$\begin{array} { | l c c c c | } \hline & \text { Assets } & \text { Liabilities } & \text { Equity } & \text { Net Income } \\\hline \begin{array} { l } \text { Reported } \\\text { amounts }\end{array} & \$ 350,000 & \$ 200,000 & \$ 150,000 & \$ 70,000 \\\hline \begin{array} { l } \text { Add (subtract) to } \\\text { correct for item: }\end{array} & & & & \\\hline\end{array}$