Accrual Errors
Loring Tools, Inc., failed to make year end adjustments to record accrued salaries and recognize interest receivable on investments over the last three years as follows:
|
2006 |
2007 |
2008 |
|
|
Accrued salaries |
$25,000 |
$19,000 |
$32,000 |
|
Interest receivable |
10,500 |
8,500 |
13,200 |
What impact would the correction of these errors have on the net income for these three years? Ignore income taxes.