60.1K

Verified Solution

Link Copied!

I need to explain question 17-18-19 step by step please

Questions 17, 18 and 19 are based on the following information. Dash, Inc.'s December 31 year-end's financial statements for the years 2018 and 2019 contained errors as follows: 2019 2018 Ending inventory $1,000 overstated $3,000 overstated Depreciation expense $800 understated $2,000 overstated 18 Assume that the proper correcting entries were made at December 31, 2018. By how much will 2019 income before taxes be overstated or understated? . HOOD +1000 El 1 COGSI GP1 2 200 T Nilo -1000 a $200 understated b. $200 overstated c. $800 overstated # $1,800 overstated Elt 18 Assume that no correcting entries were made at December 31, 2018. Ignoring income taxes, by how much will retained earnings at December 31, 2019 be overstated or understated? +3000 a. $200 understated BIT 73000 b. $1,800 overstated COGS [ +3000 $1,800 understated COGAT +30w V$3,200 understated GP 7 +3000 El a +1000 & ^ #2000 COGIS 7 2000 NI V-1000 GIPX-2000 bu 1000 E v-800 NI V 2800 19. Assume that no correcting entries were made at December 31, 2018, or December 31, 2019 and that no additional errors occurred in the year 2020. Ignoring income taxes, by how much will working capital at December 31, 2020 be overstated or understated? a. $0 $1,000 overstated c. $1,000 understated d. $1,800 understated Total Currents assets -cument Vabratry 18) B1 +3000 - L n 3000 19 +3000 +1000 - > 7 4000 +1000 -L 91000

Answer & Explanation Solved by verified expert

See Answer