Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($18,340) and (b) accrued wages ($5,140). If the net income for the current year had been $354,500, what would have been the correct net income if the proper adjusting entries had been made?

Pomona inc. uses the aging method in accounting for uncollectible accounts.  On March 31, the company wrote off an uncollectible account of $2,600.  What effect does the write-off have on the company's financial statements?

For the items listed below, indicate how each should be reported in the financial statements. Use the following letter code for your selections: a. Continuing operations b. Discontinued operations c. Prior period adjustment 1. The percentage of estimated bad debts was increased from 1% to 2%, thus increasing bad debt expense. 2. Obsolete inventory was written off. 3. Investments were sold for less than cost. 4. It was discovered that dividend revenue was inadvertently omitted from last year’s income statement. 5. The company sold one of its warehouses at a loss. 6. Litigation with the federal government related to income taxes of three years ago was settled. The company is continually involved in various adjustments with the federal government related to its taxes. 7. A component of the business was disposed of at a loss. 8. The company neglected to record depreciation expense on some assets in the previous year. 9. All production in the United States was…

In December of 2019, a company received consulting services of $100,000. No entry was recorded for these service in 2019. The invoice for the services was received in January 2020 and recorded by debiting consulting expense and crediting accounts payable. This error was discovered in 2020 and was determined to be a material error. What is the impact of the error on the net income of 2019 and 2020? Provide the proper correcting journal enntry assuming a 30% tax rate.