Homework Answers
Answer:
Net income will be increased by $15,500
Explanation:
| Rent expense | $5,900 |
| Depreciation expense | $7,100 |
| Supplies expense | $2,500 |
| Total expense omitted | $15,500 |
If the above expenses are omitted then the net income is increased by $15,500.
Correct net income = Net income prior to adjustments - Adjustments = $79,000-$15,500 = $63,500
If adjustments are not recorded then net income is showing $15,500 higher than the actual.
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