The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2018,

Question:

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2018, $147,000; 2019, $185,000. Early in 2020, the following errors were discovered.

1. Depreciation of equipment for 2018 was overstated $19,000.

2. Depreciation of equipment for 2019 was understated $38,500.

3. December 31, 2018, inventory was understated $50,000.

4. December 31, 2019, inventory was overstated $14,200.


Instructions

Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2019 are closed. (Ignore income tax considerations.)

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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