prepare a worksheet to determine the correct net income for the years 2005 2006 2007 610603

Error Correction – A review of the books of the Anderson Corporation indicates that the errors and omissions pertaining to the balance sheet accounts shown as follows had not been corrected during the applicable years. The net income per the books is: 2005—$10,000; 2006—$12,000; 2007—$15,000; and 2008—$20,000. No dividends were declared during these years and no adjustments were made to retained earnings. The Retained Earnings balance on December 31, 2008, is $50,000.

Required

Prepare a worksheet to determine the correct net income for the years 2005, 2006, 2007, and 2008, and the adjusted balance sheet accounts as of December 31, 2008. (Ignore possible income tax effects.)