Question
Cullumber Corp. is a calendar-year corporation whose financial statements for 2022 and 2023 included errors as follows: Year Ending Inventory Depreciation Expense 2022 $36300 overstated
Cullumber Corp. is a calendar-year corporation whose financial statements for 2022 and 2023 included errors as follows:
| Year | Ending Inventory | Depreciation Expense | |
| 2022 | $36300 overstated | $29500 overstated | |
| 2023 | 11900 understated | 10500 understated |
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2022 or December 31, 2023. Ignoring income taxes, by how much should Cullumber's retained earnings be retrospectively adjusted at January 1, 2024?
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Answer Impact on Net Income The errors in ending inventory and depreciation expense will affect Cullumbers net income for both years as follows Overst...
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
