The Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned
Question:
The reported pretax income was $20,000 in 2006, $25,000 in 2007, and $23,000 in 2008.
Required
1. Compute the correct pretax income for 2006, 2007, and 2008.
2. Prepare the journal entries necessary in 2008 if the errors are discovered at the end of that year. Ignore income taxes.
3. Prepare the journal entries necessary in 2009 if the errors are discovered at the end of that year. Ignore incometaxes.
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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