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7 For each situation, identify whether it is treated as a prior period adjustment or change in accounting estimate 1. Upon reviewing customer contracts, the

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7 For each situation, identify whether it is treated as a prior period adjustment or change in accounting estimate 1. Upon reviewing customer contracts, the company realizes it mistakenly reported $110,000 of revenue Instead of the actual amount earned of $11,000. This mistake occurred two years ago and had a material effect on financial statements. 2. After using equipment for the past six years, which had an estimated useful life of ten years and no salvage value, the company revaluates the equipment and now estimates the salvage value to be $10,000. 3. An assessment of expenses uncovers that the company incorrectly capitalized research and development costs three years ago This error had a material effect on financial statements. Book References Complete this question by entering your answers in the tabs below. Required: Required 2 Required Upon reviewing customer contracts, the company realizes it mistakenly reported $110,000 of revenue instead of the actual amount eamed of $11,000. This mistake occurred two years ago and had a material effect on financial statements Station 1 Hequired a > 7 For each situation, Identify whether it is treated as a prior period adjustment or change in accounting estimate 1. Upon reviewing customer contracts, the company realizes it mistakenly reported $110,000 of revenue instead of the actual amount earned of $11,000. This mistake occurred two years ago and had a material effect on financial statements. 2. After using equipment for the past six years, which had an estimated useful life of ten years and no salvage value, the company revaluates the equipment and now estimates the salvage value to be $10,000 3. An assessment of expenses uncovers that the company incorrectly capitalized research and development costs three years ago This error had a material effect on financial statements och Neferences Complete this question by entering your answers in the tabs below. Required Reqdired 2 Required After using equipment for the past six years, which had an estimated useful life of ten years and no salvage value, the company revaluates the equipment and now estimates the salvage value to be $10,000 Situation 2 Ches 7 For each situation, identify whether it is treated as a prior period adjustment or change in accounting estimate 1. Upon reviewing customer contracts, the company realizes it mistakenly reported $110,000 of revenue instead of the actual amount earned of $11,000. This mistake occurred two years ago and had a material effect on financial statements. 2. After using equipment for the past six years, which had an estimated useful le of ten years and no salvage value, the company revaluates the equipment and now estimates the salvage value to be $10,000 3. An assessment of expenses uncovers that the company incorrectly capitalized research and development costs three years ago This error had a material effect on financial statements Heferences Complete this question by entering your answers in the tabs below. Required: Required 2 Required An assessment of expenses uncovers that the company incorrectly capitalized research and development costs three years ago. This error had a material effect on financial statements. Son 3 (cred 2

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