At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, P.C.

At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, P.C.

Net Income for May   $127,500

Total assets for May 31   $480,000

Total liabilities for May 31    $150,000

Total Stockholders’ Equity for May 31   $330,000

In preparing the financial statements, adjustments for the following data were overlooked:

A. Unbilled fees earned at May 31, $9,700

B. Depreciation of equipment for May $8,000

C. Accrued wages at May 31, $1,150

D. Supplies used during May, $975

Instructions:

Determine the correct amount of net income for May and the total assets, liabilities, and stockholders equity at May 31. In addition to indicating the corrected amounts, indicate the effectr of each omitted adjustment by setting up and completing a columnar table similar to the one shown below. Adjustments (a) is presented as an example.

                             Net Income           Total Assets  =   Total Liabilities  + Total Stockholders’ Equity

Reported Amounts     $127,500          $480,000            $150,000             $330,000

Corrections:

Adjustment A             +9,700             +9,700                      0                      +9,700

Adjustment B

Adjustment C

Adjustment D

Corrected Amounts: