Question

The net income reported on the income statement is $66,953. However, adjusting entries have not been made at the end of the period for the supplies expense of $2,024 and accrued salaries of $1,251. Net income, as corrected, is

Answer 1

Answer:

The corrected net income is $63,678

Explanation:

For computing the correct balance of the net income, the following things should be subtracted from the net income which is reported on the income statement.

In mathematically,

Corrected net income = Reported net income - Supplies expense - accrued salaries

= $66,953 - $2,024 - $1,251

= $63,678

The supplies expense and accrued salaries are an expense which is needed to be deducted so that the correct value of net income can arrive. Thus, we subtracted these two expenses.

Hence, the corrected net income is $63,678