Net income is reported on the income statement at $30,000. Adjusting entries for accrued revenues of $2,000 and unearned revenue earned during the current period of $5,500 were accidentally omitted. The correct net income is:

Question

Quizplus · Accepted Answer

The correct net income should include the adjustments for accrued revenues and unearned revenue that were earned during the period but omitted. Adding these amounts to the initially reported net income ($30,000 + $2,000 + $5,500) gives a corrected net income of $37,500.

Net Income Is Reported on the Income Statement at $30,000