Effects of adjustments A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $237,000, and the balance sheet showed ending retained earnings of $910,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $50,000 and increase expenses by $84,000. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.

Effects of adjustments A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $237,000, and the balance sheet showed ending retained earnings of $910,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $50,000 and increase expenses by $84,000. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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