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and
deferrals. Selected accounts revealed the following information.
Required:
Compute the corrected profit for each of the years 2016, 2017, and 2018 and prepare audit adjusting entries to correct the
financial statements for the year ended December 31, 2018. Follow the format provided below:
Required:
Retained
2018
Under/(Over) Earnings
Nature of Error Accounts
statement in profit of
Affected
1/1/18
1. Expenses 30,000
Prepaid Expenses 34,000
Revenues 28,000
Unearned Revenue 15,000
Expenses 25,000
Accrued Expenses 27,000
4. Revenue 45,000
Accrued Revenue 41,000