Vance Company reported net incomes for a three-year period as follows:

2009 ................... $186,000

2010 ................. $189,000

2011 ................. $180,000

In reviewing the accounts in 2012 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities:

Instructions
(a) Determine corrected net incomes for 2009, 2010, and 2011.
(b) Give the entry to bring the books of the company up to date in 2012, assuming that the books have been closed for2011.

Transcribed Image Text:

2009 2011 Overstatement of ending inventory Understatement of accrued advertising expense 2010 $42,000 S51,000 S24,000 12,000 6,600