The net income of Leonard's Resume Writing Service has been reported on the income statement as $51,875.
Question:
The net income of Leonard's Resume Writing Service has been reported on the income statement as $51,875. There was an unidentified adjusting entry for accrued salaries of $1,100 that were not recorded for part-time employees who earned the money but for whom payday has not come. Additionally, there was depreciation on computer equipment that was accidentally not recorded, in the amount of $1,610. Because these entries were not properly recorded, you know the income statement was incorrect. If you correct this income statement, what would the net income actually be?
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood