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A Effects of Adjusting Entries on the Accounting Equation
Refer to the information provided for Flood Relief Inc. in Problem 4-1 A.
Required
1. Prepare a table to summarize the required adjusting entries as they affect the accounting equation. Use the format in Exhibit 3-1 on page 109. Identify each adjustment by letter.
2. Assume that Flood Relief reports income of $35,000 before any of the adjusting entries. What net income will Flood Relief report for June?
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