Question

U U pomembno Wk 3 - Practice: Connect Knowledge C... 6 Saved Help Save & Exit Su Check my we Constantine Corporation reported Net Income for the year ended December 31, 2019, of $23,760 then discovered that the entry to pay the rent for December in the amount of $1,600 was not journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted? 0.66 points eBook Multiple Choice References O $23760 $25,360 O $20,560 O $22,160 O < Prev 3 of 30 Next >

Answer 1

Constantine Corporation: Rent is an expenses to an entity, and shown in Debit side of Profit and loss account. As per Generally accepted accounting principles: whether rent is paid or payable every entity should post in Debit side of Profit and loss account.

In the instant case rent was omitted to post in books of accounts of Constantine Corporation, so we need to adjust by debiting to the profit and loss account, hence the profit for the period will be gradually declined.

a	Net income before correction	$ 23,760
b	Less: Rent for December	($ 1,600)
c	Net income after correction (a-b)	$ 22,160

Hence the final Option is correct, net income after adjustment is $ 22,160.