Cheyenne Tool Companys December 31 year-end financial statements contained the following errors. December 31, 2020...
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Cheyenne Tool Companys December 31 year-end financial statements contained the following errors. December 31, 2020 December 31, 2021 Ending inventory $10,300 understated $8,800 overstated Depreciation expense $2,200 understated An insurance premium of $59,700 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $14,000 cash, but the entry was not recorded until 2022. There were no other errors during 2020 or 2021, and no corrections have been made for any of the errors. (Ignore income tax considerations.)
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