Poe Company failed to recognize accruals and prepayments since the inception of business three years ago. The income before tax, accrual and prepayment at the end of the current year are: Income before tax 5,000,000 Prepaid insurance Accrued wages 200,000 250,000 Rent revenue collected in advance 300,000 Interest receivable 500,000 What is the corrected net income before tax for the current year?

Poe Company failed to recognize accruals and prepayments since the inception of business three years ago. The income before tax, accrual and prepayment at the end of the current year are: Income before tax 5,000,000 Prepaid insurance Accrued wages 200,000 250,000 Rent revenue collected in advance 300,000 Interest receivable 500,000 What is the corrected net income before tax for the current year?

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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