Reference no: EM132744361
Question - The net income reported by Kyo Repair Shop on December 31, 2018 was P262,000. The following documents were given by Kyo to the accountant after the income statement was prepared:
1) Insurance applicable for next year, P8,200.
2) Salaries unrecorded and unpaid, P4,000.
3) Interest on a P120,000 note issued to the bank by Smith Repair Shop at 16% per annum was not taken up.
4) Recorded to deferred income account was P60,000 of which 80% has been actually earned.
5) Depreciation of equipment, P12,000.
Required - How much is the correct net income for the year ended December 31, 2018?