What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value) BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception ofits business three years ago. The accruals and prepayments at the end of 2021 are as follows:Unused office supplies$ 25,00052,000Accrued utilitiesRent revenue collected in advance87,500Interest receivable65,500Accrued wages49,100Prepaid insurance60,000

The accrued expense are those expenses that are due but the payment of these expenses are not made…

Answered: What is the net effect of the above…

What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 45P

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Question

What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)

BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of
its business three years ago. The accruals and prepayments at the end of 2021 are as follows:
Unused office supplies
$ 25,000
52,000
Accrued utilities
Rent revenue collected in advance
87,500
Interest receivable
65,500
Accrued wages
49,100
Prepaid insurance
60,000

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