During your audit of the books of Alarcon Corporation for the year ended December 31, 2021, you discovered that certain accrued expenses were overlooked at the end of 2014, 2015 and 2016. Not recognized at year end 2019 2020 2021 Accrued salaries expenses 15,000 10,000 12,000 Accrued rent expense 25,000 Accrued interest payable 2,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021
During your audit of the books of Alarcon Corporation for the year ended December 31, 2021, you discovered that certain accrued expenses were overlooked at the end of 2014, 2015 and 2016. Not recognized at year end 2019 2020 2021 Accrued salaries expenses 15,000 10,000 12,000 Accrued rent expense 25,000 Accrued interest payable 2,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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Question
During your audit of the books of Alarcon Corporation for the year ended December 31, 2021, you discovered that certain accrued expenses were overlooked at the end of 2014, 2015 and 2016.
| Not recognized at year end | 2019 | 2020 | 2021 |
| Accrued salaries expenses | 15,000 | 10,000 | 12,000 |
| Accrued rent expense | 25,000 | ||
| Accrued interest payable | 2,000 | ||
| Net income for the year | 500,000 | 550,000 | 600,000 |
| 8,300,000 | 8,800,000 | 9,200,000 |
REQUIRED:
Based on the foregoing, compute the corrected balances of following:
- Net income for 2019
- Net income for 2020
- Net income for 2021
- Retained Earnings as of December 31, 2019
- Retained Earnings as of December 31, 2020
- Retained Earnings as of December 31, 2021
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