Goldfinch Inc. reported net incomes for the last three years as follows:

2018, $ 62,000; 2019, $ 63,000; 2020, $ 60,000 In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made:

2018 2019 2020

Overstatement of ending inventory $ 7,000 $ 8,500 $ 4,000

Understatement of accrued advertising expense 1,100 2,000 1,200

Instructions:

a) Calculate corrected net income for 2018: $____________________

b) Calculate corrected net income for 2019: $____________________

c) Calculate corrected net income for 2020: $____________________

d) Prepare the entry required in 2021 to correct the books. Ignore income taxes.