Net income is reported on the income statement at $25,000. Adjusting entries for accrued revenues of $4,000 and unearned revenue earned during the current period of $1,500 were accidentally omitted. The correct net income is:

Question

Quizplus · Accepted Answer

The correct net income should include the adjustments for accrued revenues ($4,000) and the unearned revenue that was earned ($1,500), both of which increase net income. Therefore, the corrected net income is $25,000 + $4,000 + $1,500 = $30,500.

Net Income Is Reported on the Income Statement at $25,000