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assume rhat a firm reports net income of $82000 prior to making adjusting entries for the...

assume rhat a firm reports net income of $82000 prior to making adjusting entries for the following items expired rent $6200 depreciation expense $7400 and supplies used $2800.
asdume that the required entries have not been made. wgat effecr do these have on the reported net income ?

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Answer #1

Solution :

Since the adjustment entries have not been made the net Income has been overstated by = $ 16,400

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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