Grouper Corporation has used the accrual basis of accounting, for several vears. A review of the records, however, indicates that some

expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper: Income

statements prepared by the bookkoper reported $$30,800$ net income for $2024$ and $$34,100$ net income for $2025.$ Further

cxamination of the records reveals that the following items were handled improperly.

Rent was recelved from a tenant in December $2024.$ The amount, $$980,$ was recorded as revenue at that time even though

the rental pertained to $2025.$

Salaries and wages palyable on December $31$ have been consistently amitted from the records of that date and hive ben

entered as expenses when paid in the following year. The amounts of the accoruals recorded in this manner were:

Invoices for supplies purchased have been charged to expense accounts when received. I rwentaries of supplies on harid at the

end of each year have beeri igrored, and no entry has beeri made for them.

Deremher $31,2023,$$$1,240$

December $31,2024,860$

Deccmber $31,2025,1,470$

Prepare a schedule that will show the corrected net income for the years $2024$ and $2025.$ All items listed should be labeled clearly.

$($Ignore income tax considerations.$)($Enter negathe amounts using either a negative sign preceding the number e$.$g$.-15,000$ or parentheses

e$.$g$.(15,000).)$

$2024$

$2025$

Net income, as reported

Rent received in $2024,$ carned in $2025$

Salaries and Wages not accrued, $12/31/23$

Salaries and Wages not accrued, $12/31/24$

Salaries and Wapes not accrued, $12/31/25$

Inventory of supplies, $12/31/23$

Inventory of supplies, $12/31/24$

Inventory of supplies, $12/31/25$