Problem:
A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $47,400, and the balance sheet showed ending retained earnings of $182,000. The firm's accountant reviewed the bookkeeper's work and determined that adjusting should be made that would increase revenues by $10,000, and decrease expenses by $16,800.
Required to do:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.