corrected net income for the year
Below is the income statement of Krispy & Kreme Co. for the year ended December 31, 2021:
| Sales | $1,000,000 |
| Cost of Goods Sold | $600,000 |
| Gross Income | $400,000 |
| Operating Expenses | $150,000 |
| Net Income | $250,000 |
The following errors were seen:
1.) Accrued expenses of $4,000, prepaid expenses of $6,000 were not recognized in the company's books. The company employs the expense method in accounting for prepayments.
2.) Sales of $5,000 were not recorded until January 2022, although the goods were shipped on December 31, 2021, and were excluded from the December 31 physical inventory.
3.) December 31, 2021-Inventory is understated by $31,000.
4.) Purchases of $30,000 made on December 31, 2021 were not recorded although the goods were received and properly included in the December 31 physical inventory.
5.) A machine was sold for $10,000 on July 1, 2021. The proceeds were credited to the Sales account. The machine was acquired on January 1, 2018 for $60,000 with an estimated life of 6 years with no residual value. No
What is the corrected net income for the year ended December 31, 2021?
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