A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $216,000, and the balance sheet showed ending retained earnings of $810,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $60,000 and increase expenses by $84,000. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. (Enter any decreases as negatives.) Amounts before adjustment Revenue increase adjustment Expense increase adjustment Amounts after adjustment Net Income Retained Earnings E

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $216,000,
and the balance sheet showed ending retained earnings of $810,000. The firm's accountant reviewed the bookkeeper's work and
determined that adjustments should be made that would increase revenues by $60,000 and increase expenses by $84,000.
Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. (Enter any decreases as
negatives.)
Amounts before adjustment
Revenue increase adjustment
Expense increase adjustment
Amounts after adjustment
Net Income Retained Earnings
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Transcribed Image Text:A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $216,000, and the balance sheet showed ending retained earnings of $810,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $60,000 and increase expenses by $84,000. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. (Enter any decreases as negatives.) Amounts before adjustment Revenue increase adjustment Expense increase adjustment Amounts after adjustment Net Income Retained Earnings < Prev 9 of 10 Next > Feb 26
Expert Solution
Explanation -

Income & Expenses -

Incomes are revenue earned by the organization from either sales or service. Expenses are the losses which can be incurred in any form like salaries expenses, Supplies Expense, Advertising Expense and so on.

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