Exercise 4-20 (Algo) Effects of adjustments LO 4-6, 4-7 A bookkeeper prepared the year-end financial statements of Giftwrap, Incorporated The income statement showed net income of $22,800, and the balance sheet showed ending retained earnings of $91,900. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $5,600 and increase expenses by $8,900. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. Note: Enter any decreases as negatives. Amounts before adjustment Revenue increase adjustment Expense increase adjustment Amounts after adjustment Net Income Retained Earnings
Exercise 4-20 (Algo) Effects of adjustments LO 4-6, 4-7 A bookkeeper prepared the year-end financial statements of Giftwrap, Incorporated The income statement showed net income of $22,800, and the balance sheet showed ending retained earnings of $91,900. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $5,600 and increase expenses by $8,900. Required: Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. Note: Enter any decreases as negatives. Amounts before adjustment Revenue increase adjustment Expense increase adjustment Amounts after adjustment Net Income Retained Earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 4-20 (Algo) Effects of adjustments LO 4-6, 4-7
A bookkeeper prepared the year-end financial statements of Giftwrap, Incorporated The income statement showed net income of
$22,800, and the balance sheet showed ending retained earnings of $91,900. The firm's accountant reviewed the bookkeeper's work
and determined that adjustments should be made that would increase revenues by $5,600 and increase expenses by $8,900.
Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.
Note: 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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