Net income is reported on the income statement at $75,000. Adjusting entries for accrued revenues of $6,000 and unearned revenue earned during the current period of $2,500 were accidentally omitted. The correct net income is:

Question

Quizplus · Accepted Answer

The correct net income should include the omitted accrued revenues and unearned revenue that was earned. Adding $6,000 (accrued revenues) and $2,500 (unearned revenue earned) to the reported net income of $75,000 results in a correct net income of $83,500.

Net Income Is Reported on the Income Statement at $75,000