on 1 (1 point) At December 31, 2020, Grant Corp's auditor discovered the following errors...
70.2K
Verified Solution
Link Copied!
Question
Accounting
on 1 (1 point) At December 31, 2020, Grant Corp's auditor discovered the following errors 1. Accrued salaries payable of $ 11,000 were NOT recorded at December 31.2019 2. Office supplies on hand of $ 5,000 at December 31, 2020 had been treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause 1) 2020 net income and December 31, 2020 retained earnings to be understated $ 5,000 each. 2) 2019 net income to be overstated $ 6,000 and 2020 net income to be understated $ 5,000. 3) 2019 net income and December 31, 2019 retained earnings to be understated $ 11,000 each. 4) None of the other answers are correct. 5) 2020 net income to be understated $ 16,000 and December 31, 2020 retained earnings to be understated $ 5,000
Answer & Explanation
Solved by verified expert
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!
