Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2022, draper company discovered errors made in

In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021 2020 2019 Items not...

50.1K

Verified Solution

Question

Accounting

In 2022, Draper Company discovered errors made in 2019-2021, itsfirst three years of operation.

2021

2020

2019

Items not recognized:

Prepaid expenses

$1,300

$900

$550

Unearned Revenues

950

700

800

Other information:

Reported net income

$23,000

$25,000

$20,000

Dividends declared and paid

4,100

2,600

5,000

Common stock and additional paid in capital at12/31

22,000

17,000

15,000

Indicate the error in 12/31/21 RetainedEarnings:

Select one:

a. $400 overstated

b. $350 overstated

c. $400 understated

d. $350 understated

e. $550 understated

Question 29

Not yet answered

Points out of 3.00

Flag question

Question text

In 2022, Draper Company discovered errors made in 2019-2021, itsfirst three years of operation.

2021

2020

2019

Items not recognized:

Prepaid expenses

$1,300

$900

$550

Accrued expenses

950

700

800

Other information:

Reported net income

$23,000

$25,000

$20,000

Dividends declared and paid

4,100

2,600

5,000

Common stock and additional paid in capital at12/31

22,000

17,000

15,000

Corrected 12/31/21 Total Equity will be:

Select one:

a. $78,450

b. $110,300

c. $77,950

d. $110,650

e. $78,650

Answer & Explanation Solved by verified expert
3.8 Ratings (733 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Select 1 Chronic Disease and comment on your risk factors. Make sure to include dietary and...

Medical Sciences
Q

An increase of temperature causes humans to increase sweat production and plants to increase the...

Biology
Q

Jupiter has a mass of 1.898x1027 kg and radius of 69,912 km. If we were...

Physics
Q

Let f x Find T 31 10 I 71 8 1 Domain in interval notation...

Calculus
Q

C Write an equation for C then state the slope of the graph and determine...

Calculus
Q

an equation in slope intercept form of the line that passes through the points 2...

Algebra
Q

Chapter 9 Merchandising Business: - End of Period Adjustments and Completion of the Accounting...

Accounting
Q

A lower of cost or market write-down would be recorded with a debit to Cost...

Accounting
Q

Prepare a pension worksheet inserting the January 1, 2022 and December 31, 2022, balances. (Enter...

Accounting
Q

Figure out the journal entry for.... June 15 Record a sales return and allowance One...

Accounting
Q

Two 20 -year maturity mortgage-backed bonds are issued. The first bond has a par value...

Accounting
Q

7-45 Direct materials and direct manufacturing labor variances with missing data. The Shirt Company produces...

Accounting