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QUESTION 3 (16 marks) A company issued financial statements for the year ended December 31,...

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Accounting

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QUESTION 3 (16 marks) A company issued financial statements for the year ended December 31, but failed to include the following adjusting entries: (1) Accrued interest revenue earned of $1,200. (ii) Portion of prepaid insurance expired $1,100. (iii) Accrued taxes of $3,200. (iv) 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: Assets Liabilities Equity Profit Reported amounts...... $350,000 $200,000 $150,000 $70,000 Add/(Subtract) to correct for item: (i). Kii) (iv). Corrected amounts...... (16 marks)

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