Buffalo 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 bookkeeper reported $27,700 net income for 2019 and $34,300 net income for 2020. Further examination of the records reveals that the following items were handled improperly. Rent was received from a tenant in December 2016. The amount, $1,030, was recorded as revenue at that time even though the rental pertained to 2017.

Corrected net income for 2019 = 23,750.

Corrected net income for 2020 = $36,210

Explanation:

For the year 2019, below are the particulars and the amount recorded for each particulars.

Net income => $27,700.

Rent received in 2019 => - $1,030.

Salaries and Wages not accrued, 12/31/18 => - $1190.

Salaries and Wages not accrued, 12/31/19 => - $1290.

Inventory of Supplies, 12/31/18 = - 1430.

Inventory of Supplies, 12/31/19 = 990

Corrected net income = 23,750.

For the year 2020, below are the particulars and the amount recorded for each particulars.

Net income => $34,300.

Rent received in 2020 => $1,030.

Salaries and Wages not accrued, 12/31/2020 => - $ 870

Salaries and Wages not accrued, 12/31/19 => $1290.

Inventory of Supplies, 12/31/19 = - 990.

Inventory of Supplies, 12/31/20 = 1450.

Corrected net income = $36,210

answer; /// that is so (false);

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough