On December 31, 2022, Sheridan Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $159,000, total liabilities $74,200, and stockholders’ equity $84,800. The incorrect income statement showed net income of $74,200. The data for the three adjustments were: 1. Salaries and wages amounting to $10,600 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent payments of $8,480 were received for two months in advance on December 1. The entire amount was recorded as Unearned Rent Revenue when received. 3. Depreciation expense for 2022 is $9,540. 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).) Item Net Income Total Assets Total Liabilities Stockholders’ Equity Incorrect balances $74,200 $159,000 $74,200 $84,800 Effects of: Salaries and Wages enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Rent Revenue enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Depreciation enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Correct balances

On December 31, 2022, Sheridan Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $159,000, total...

On December 31, 2022, Sheridan Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $159,000, total liabilities $74,200, and stockholders’ equity $84,800. The incorrect income statement showed net income of $74,200.

The data for the three adjustments were:

1.		Salaries and wages amounting to $10,600 for the last 2 days in December were not paid and not recorded. The next payroll will be in January.
2.		Rent payments of $8,480 were received for two months in advance on December 1. The entire amount was recorded as Unearned Rent Revenue when received.
3.		Depreciation expense for 2022 is $9,540.

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).)

Correct balances
Item	Net Income	Total Assets	Total Liabilities	Stockholders’ Equity
Incorrect balances	$74,200	$159,000	$74,200	$84,800
Effects of:
Salaries and Wages	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Rent Revenue	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Depreciation	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount

Jun 09, 2022

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On December 31, 2022, Sheridan Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $159,000, total...

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