Karen Company reported net incomes for a three-year period as follows: 2019, $191,800; 2020, $198,400; 2021, $178,500 In reviewing the accounts in 2022 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities: 2019 2020 2021 Overstatement of ending inventory $42,700 $51,800 $30,000 Understatement of accrued advertising expense 7,300 11,400 7,400 (a) Determine corrected net incomes for 2019, 2020, and 2021. Corrected Net Income 2019 $ 2020 $ 2021 $
Karen Company reported net incomes for a three-year period as follows: 2019, $191,800; 2020, $198,400; 2021, $178,500 In reviewing the accounts in 2022 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities: 2019 2020 2021 Overstatement of ending inventory $42,700 $51,800 $30,000 Understatement of accrued advertising expense 7,300 11,400 7,400 (a) Determine corrected net incomes for 2019, 2020, and 2021. Corrected Net Income 2019 $ 2020 $ 2021 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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