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A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $118,000, and the balance sheet showed ending retained

A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $118,000, and the balance sheet showed ending retained earnings of $455,000. The firms accountant reviewed the bookkeepers work and determined that adjustments should be made that would increase revenues by $25,000 and increase expenses by $42,000.

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Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded. (Enter any decreases as negatives.)

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Amounts before adjustment Revenue increase adjustment Expense increase adjustment Amounts after adjustment Net Income Retained Earnings 0 0

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