(Error Analysis) Lowell Corporation has used the accrual basis of accou

(Error Analysis) Lowell Corporation has used the accrual basis of accounting for several years. 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 book- keeper reported $29000 net income for 2013 and $37000 net income for 2014. Further examination of the records reveals that the following items were handled improperly. 1. Rent was received from a tenant in December 2013. The amount $1000 was recorded as revenue at that time even though the rental pertained to 2014. 2. Salaries and wages payable on December 31 have been consistently omitted from the records of that date and have been entered as expenses when paid in the following year. The amounts of the accruals recorded in this manner were: December 31 2012 $1100 December 31 2013 1200 December 31 2014 940 3. Invoices for supplies purchased have been charged to expense accounts when received. Inventories of supplies on hand at the end of each year have been ignored and no entry has been made for them. December 31 2012 $1300 December 31 2013 940 December 31 2014 1420 Instructions Prepare a schedule that will show the corrected net income for the years 2013 and 2014. All items listed should be labeled clearly. (Ignore income tax considerations.)

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