Draft financial statements for a business showed a profit for the year of $62000.
The following errors were discovered.
1 Accrued loan interest payable of $3900 had not been accounted for.
2 Allowance for irrecoverable debts had been overstated by $4800.
3 Depreciation was found to be understated by $7500.
4 Prepaid rent expense of $2600 had not been accounted for.
What was the corrected profit for the year?
1 )
$43200
2 )
$48400
$58000
4 )
$60600
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