What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
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What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
![BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of
its business three years ago. The accruals and prepayments at the end of 2021 are as follows:
Unused office supplies
$ 25,000
52,000
Accrued utilities
Rent revenue collected in advance
87,500
Interest receivable
65,500
Accrued wages
49,100
Prepaid insurance
60,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b86dd48-7331-414a-85db-6e2365981c1c%2Fb38b8d85-8d53-4127-8c68-6131a23bfbca%2Fijt3zrg_processed.png&w=3840&q=75)
Transcribed Image Text:BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of
its business three years ago. The accruals and prepayments at the end of 2021 are as follows:
Unused office supplies
$ 25,000
52,000
Accrued utilities
Rent revenue collected in advance
87,500
Interest receivable
65,500
Accrued wages
49,100
Prepaid insurance
60,000
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