Calculate the amounts of net income and retained earnings


A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $10,000 and increase expenses by $16,800.

Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.

 

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Financial Accounting: Calculate the amounts of net income and retained earnings
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