A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of $22,300, and the balance sheet showed ending retained earnings of $90,500. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $5,900 and increase expenses by $8,800. Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.

• Net income $19,400

• Retained earnings $87,600

Explanation:

With regards to the above,

Net income before adjustments

$22,300

Add: Increase in revenue

$5,900

Less: Increase in expenses

($8,800)

Net income after adjustment

$19,400

Retained earnings before adjustment

$90,500

Less: Decrease in net income ($22,300 - $19,400)

($2,900)

Retained earnings after adjustment

$87,600

statement of owner"s equity;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.