LeBow Company reported net incomes for a three-year period as follows:
2013 $211,000 2014 $219,000 2015 $200,000
In reviewing the accounts in 2015 after the books for the prior years have been closed, you find the following errors were made:
2012 2013 2014
Understatement of accrued interest expense 62,000 71,000 49,000
Failure to accrue salary expense 0 50,000 0
Required:
1. Determine the corrected net incomes for 2012,2013, and 2014.
2. Prepare the necessary correcting entries in 2015 assuming the books have been closed for 2014.