Assume a firm reports net income of 84,000 prior to making adjusting entries for expired rent $6400, depreciation 7600 and supplies used 3,000
Assume that the entries have not been made What effect do these errors have on the reported net income

Assume that the entries have not been made. The effect that these errors have on the reported net income is: Net income will be overstated by $17,000.

Net income

Using this formula

Net income=Expired rent+Depreciation+Supplies

Let plug in the formula

Net income=$6400+$7600+$3000

Net income=$17,000 (Overstated)

Therefore the net income will be overstated by $17,000.

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Assume a firm reports net income of 84,000 prior to making adjusting entries for expired rent $6400, depreciation 7600 and supplies used 3,000 Assume that the entries have not been made What effect do these errors have on the reported net income

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Net income

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Assume a firm reports net income of 84,000 prior to making adjusting entries for expired rent $6400, depreciation 7600 and supplies used 3,000
Assume that the entries have not been made What effect do these errors have on the reported net income