3. Net income for 2021 Select ) 4. Retained Earnings as of December 31, 2019 ( Select] Retained Farpinas as of December 31 2020 I Select 1
3. Net income for 2021 Select ) 4. Retained Earnings as of December 31, 2019 ( Select] Retained Farpinas as of December 31 2020 I Select 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer 3 & 4
![During your audit of the books of Colorado Corporation for the year ended
December 31, 2021, you discovered that certain accrued income and expenses were
overlooked at the end of 2019, 2020 and 2021.
Not
recognized
2019
2020
2021
at year end
Accrued
interest
2,000
3,000
income
Accrued
salaries
12,000
6,000
expense
Accrued
rent
20,000
payable
Net income
500,000 550,000 600,000
for the year
Retained
earnings at 8,300,000 8,800,000 9,200,000
year end
REQUIRED:
Based on the foregoing, compute the corrected balances of following:
1. Net income for 2019 Select ]
2. Net income for 2020 [Select]
3. Net income for 2021 Select ]
4. Retained Earnings as of December 31, 2019 Select ]
5. Retained Earnings as of December 31, 2020 [Select]
6. Retained Earnings as of December 31, 2021 Select]
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Transcribed Image Text:During your audit of the books of Colorado Corporation for the year ended
December 31, 2021, you discovered that certain accrued income and expenses were
overlooked at the end of 2019, 2020 and 2021.
Not
recognized
2019
2020
2021
at year end
Accrued
interest
2,000
3,000
income
Accrued
salaries
12,000
6,000
expense
Accrued
rent
20,000
payable
Net income
500,000 550,000 600,000
for the year
Retained
earnings at 8,300,000 8,800,000 9,200,000
year end
REQUIRED:
Based on the foregoing, compute the corrected balances of following:
1. Net income for 2019 Select ]
2. Net income for 2020 [Select]
3. Net income for 2021 Select ]
4. Retained Earnings as of December 31, 2019 Select ]
5. Retained Earnings as of December 31, 2020 [Select]
6. Retained Earnings as of December 31, 2021 Select]
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