On December 31, 2011, Quinlan-Cohen Company prepared an income statement and balance sheet and…

On December 31, 2011, Quinlan-Cohen Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect basis, reflected pretax income of $60,000. The balance sheet (before the effect of income taxes) reflected total assets, $180,000; total liabilities, $80,000; and stockholders’ equity, $100,000. The data for the four adjusting entries follow:a. Depreciation of $16,000 for the year on equipment that cost $170,000 was not recorded.b. Wages amounting to $34,000 for the last three days of December 2011 were not paid and not recorded (the next payroll will be on January 10, 2012).c. Rent revenue of $9,600 was collected on December 1, 2011, for office space for the period December 1, 2011, to February 28, 2012. The $9,600 was credited in full to Unearned Rent Revenue when collected.d. Income taxes were not recorded. The income tax rate for the company is 30 percent.Required:Complete the following tabulation to correct the financial statements for the effects of the four errors (indicate deductions withparentheses):
View Solution:
On December 31 2011 Quinlan Cohen Company prepared an income s

"Is this question part of your assignment? We can help"

ORDER NOW