Allofe Co. Condensed Income Statement For Year Ended December 31, 20- $501,570 360,312 $141,258 Net sales Cost of goods sold Gross profit Operating expenses Net income 87,088 $ 54,170 Allofe Co. Condensed Balance Sheet December 31, 20-- Assets $ 93,014 177,441 $270,455 Current assets Property, plant, and equipment (net) Total assets Liabilities Current liabilities $ 28,671 Long-term liabilities Total liabilities 60,000 $ 88,671 Stockholders' Equity Paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 57,000 124,784 $181,784 $270,455
Allofe Co. Condensed Income Statement For Year Ended December 31, 20- $501,570 360,312 $141,258 Net sales Cost of goods sold Gross profit Operating expenses Net income 87,088 $ 54,170 Allofe Co. Condensed Balance Sheet December 31, 20-- Assets $ 93,014 177,441 $270,455 Current assets Property, plant, and equipment (net) Total assets Liabilities Current liabilities $ 28,671 Long-term liabilities Total liabilities 60,000 $ 88,671 Stockholders' Equity Paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 57,000 124,784 $181,784 $270,455
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
DRraftys of the condensed income statement and
REQUIRED
1.Identify all adjusting and closing entries that would be affected by this error and prepare the missing portions of the entries.
2.Prepare a revised condensed income statement for Allofe.(In solving this problem,assume that corporate income tax is not affected by the error)
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