Effects of adjustments A bookkeeper prepared the year end financial statements of Giftwrap, Inc The income statement showed net income of $237,000, and the balance sheet showed ending retained earnings of $910,000 The firms accountant reviewed the bookkeepers work and determined that adjustments sh...

Retained Net Income Earnings Amounts b ...

Effects of adjustments. A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed

Question:

Effects of adjustments. A bookkeeper prepared the year-end of Giftwrap, Inc. The income statement showed net income of $237,000, and the showed ending retained earnings of $910,000. The firm’s accountant reviewed the bookkeeper’s work and determined that adjustments should be made that would increase revenues by $50,000 and increase expenses by $84,000.

Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...