The reported net incomes for the first 2 years of Flounder Products, Inc, were as...
80.2K
Verified Solution
Link Copied!
Question
Accounting
The reported net incomes for the first 2 years of Flounder Products, Inc, were as follows: 2020,$147,800;2021,$202,000. Early in 2022, the following errors were discovered. 1. Depreciation of equipment for 2020 was overstated $15,900. 2. Depreciation of equipment for 2021 was understated $38,300. 3. December 31,2020 , inventory was understated $49,500. 4. December 31,2021 , inventory was overstated $14,900. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
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!
