Question
Company Gold closes its accounts on a yearly basis, that is on December 31 of each year. On 1/4/2020, the company purchased an insurance
Company Gold closes its accounts on a yearly basis, that is on December 31 of each year. On 1/4/2020, the company purchased an insurance policy for 3 years and paid the full amount of $ 25,200 in cash. The amount was debited to prepaid insurance. The net income reported for the year 2020 was $ 63,000. If the accountant missed to prepare the adjusting entry for insurance on 31/12/2020, what should be the correct net income for the year? Note: write your answer as a number only, with no commas or signs.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
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