If a firm reports net income of $71000 prior to making adjusting entri


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If a firm reports net income of $71000 prior to making adjusting entries for the following items expired rent $5100 depreciation expense $6300 and supplies used $1700

Sale price $15.00 Regular price $30.00

If a firm reports net income of $71000 prior to making adjusting

entries for the following items: expired rent, $5,100; depreciation expense $6300 and supplies used $1700
Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?


Will the Net Income be overstated or understated and by what amount?

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