Problem
A. Diane's Designs had net income for the year ended 12/31 of $56,525. Before the Income Summary account was closed, Retained Earnings had a balance of 140,000. What is the ending balance in Retained Earnings after the Income Summary account is closed?
B. The net income reported on the income statement is $59,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,500 and accrued salaries of $3,200. Net income, as corrected, is