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2. Below you will find account balances related to wages and succes as orginally reported with mons) Show the adjustments in the laties below and

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2. Below you will find account balances related to wages and succes as orginally reported with mons) Show the adjustments in the laties below and corrected balances for each account. No journal entries are required Q1. Lowell Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash this because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $20.000 net income for 2019 and $37.000 net income for 2020. Further examination of the records reveals that the following items were handied improperly. 2018 2019 2020 18.500 20000 23.000 1. Reet was received from a tenant in December 2017. The amount $1.000, was recorded as revenue at that time even though the real pertaned to 2020 Wages Expense (as reported) Adjustments 2011 error 2019 error 2020 error Wages Expense as corrected Certain wages payable on December 31 have been consistently omitted from the records of that date and have been entered as expenses when paid in the following year. The amounts of the accrual recorded in this manner were: 31-Dec-18 31-Dec-19 31-Dec 20 1.200 940 2.300 2.500 .000 3. invoices for certain supplies purchased have been charged to expense accounts when received Inventories of those supplies on hand at the end of each year have been ignored, and no entry has been made for them 31-Dec-18 1.300 31-Dec-19 940 31-Dec-20 1420 Wages Payable (as reported) Adjustments 2011 2019 error 2020 error Wages Payable (as corrected Below is a schedule showing the derivation of corrected net income for the years 2019 and 2018 2019 2020 $20,000 (1000) $37,000 1000 15000 18000 18.000 Supplies Expenses reported) Adjustments) 2018 cm (1200) Net income, as reported Rent received in 2010, camed in 2020 Wages not accrued, 12/31/18 Wages not accrued, 12/3110 Wages not accrued, 12/31/20 Supplies costo deferred. 12/ 01/18 Supplies costo deferred 129119 Supplies cost not deferred 12/31/20 Corrected net income (940 (1300) WO 2020 emer 12.31 1420 0.710. Supples Expense (as corrected) 1,800 1,300 1,250 Supplies (as reported) Adjustments) 2018 error 2019 2020 error Supplies (as corrected)

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