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Effects of adjustments A bookkeeper prepared the year-end financial statements of Giftwrap, Inc. The income statement showed net income of$237,000, and the balance sheet showed ending retained earnings of $910,000. The firm's accountant reviewed the bookkeeper's work and determined that adjustments should be made that would increase revenues by $50,000 and increase expenses by $84,000.
Required:
Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.
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