Question:
1.Net income of Alpha and Omega was incorrectly stated as $547,715 for the year ended December 31. You are called in as the accountant to determine the correct net income. After examination of the accounts, you find the following errors:
OverstatedUnderstated
(1)Office supplies (ending inventory) $ 115
(2)Amortization expense, building5,800
(3)Amortization expense, equipment $ 650
(4)Salaries payable (end of year)1,600
(5)Prepaid insurance (end of year)4,400
(6)Rent expense500
(7)Interest expense 1,200
(8)Property taxes expense 950
(9)Services fees earned2,500
(10)Rental revenue500
Compute Alpha's correct net income for the year.
Answers:
kindly state items that are understated..
Give the details in a very ellaborative way. Whether the expenses are undertated or overstated ?Please give the description
You didn't tell us if each item was "overstated" or "understated". Add and subtract and you should have an answer. No?
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