The net income reported by Haskell Company for the year was $21,400, and the capital account of the owner, J. B. Haskell, stood at $36,000. However, the com¬

pany had failed to recognize that interest amounting to $375 had accrued on a note payable to the bank. State the corrected figures for net income and for the owner’s equity. In what other respect was the balance sheet of the company in error?

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