Prepare a memo to your manager letting her know that you have completed this task and include the following:

$1.$ Detailed explanations of any of the changes that you made on the adjusting entries. Feel free to number these for ease of reading. Also explain which depreciation method you used $($straight$-$line or units of production$)$ and why.

$2.$Explain the purpose of adjusting entries and what would be the effect on the financial statements $($income statement and balance sheet$)$ if these were not completed or not completed correctly.

$3.$How much would the company's net income differ $($in dollars$)$ if these adjusting entries were not recorded?

$4.$Your manager was joking about how much different net income would be if we "forgot" to record these entries. Include a final paragraph regarding the ethics of her statement if these were not prepared.