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Unformatted text preview: discover that supplies costing $750 were on hand at December 31. d. Hales borrowed $20,000 from a local bank on October 1, 2006. Principal and interest at 12% will be paid on September 30, 2007. No accrual was made for interest. e. Net income reported in the 2006 income statement is $30,000 before reflecting any of the above items. Required: Determine the proper amount of net income for 2006. Unadjusted net income $ 30000 Adjustments: a. Insurance expense overstated + 4,000 b. Sales revenue overstated-1000 c. Supplies expense overstated + 750 d. Interest expense understated-600 Adjusted net income $ 33,150...
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This note was uploaded on 03/30/2010 for the course COB ACCY 202 taught by Professor Shapland during the Spring '10 term at University of Illinois, Urbana Champaign.
- Spring '10