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The Gerding Company discovered these errors made in year 3: Failed to record Unearned Revenue: $15 Failed to record Accrued Interest Expense: $7 Year 4 Net Income will be:
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The Gerding Company discovered these errors made in year 3: Failed to record Unearned Revenue: $15 Failed to record Accrued Interest Expense: $7 Year 4 Net Income will be:

User Alexander Radchenko
by
4.1k points

1 Answer

3 votes

Answer:

Overstated $8

Step-by-step explanation:

Calculation for Gerding Company Net income

Using this formula

Net income =Failure to record Unearned Revenue - Failure record Accrued Interest Expense

Let plug in the formula

Net income =$15-$7

Net income =$8

Therefore Gerding Company Net income will be an overstated of the amount of $8

User Fangmobile
by
4.4k points
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