During 2024, LIpe and Lipe Corporation discovered that its ending Inventorles reported on its financlal statements were misstated by the following amounts: Lipe and Lipe uses the perlodic Inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2022 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore Income taxes.) 1-b. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore Income taxes.) 2. Prepare a journal entry to correct the error in 2024. 3. Will Lipe and Lipe account for the error (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Determine the effect of 2022 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) Note: If the answers is no effect then select "No effect" in the dropdown. Ipe and Lipe uses the perlodic Inventory system and the FIFO cost method. Requlred: 1-a. Determine the effect of 2022 errors on retalned earnings at January 1, 2024, before any adjustments. (Ignore Income taxes.) 1.b. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error In 2024. 3. WIII LIpe and LIpe account for the error (a) retrospectlvely or (b) prospectively? Complete this question by entering your answers in the tabs below. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) Note: If the answers is no effect then select "No effect" in the dropdown. LIpe and LIpe uses the perlodic Inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2022 errors on retained earnings at January 1,2024 , before any adjustments. (Ignore Income taxes.) 1-b. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error in 2024. 3. Will Lipe and Lipe account for the error (a) retrospectlvely or (b) prospectlvely? Complete this question by entering your answers in the tabs below. Prepare a journal entry to correct the error in 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits. During 2024, LIpe and Lipe Corporation discovered that its ending Inventorles reported on its financlal statements were misstated by the following amounts: Lipe and LIpe uses the perlodic Inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2022 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore Income taxes.) 1-b. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore Income taxes.) 2. Prepare a journal entry to correct the error in 2024. 3. Will Lipe and Lipe account for the error (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Will Lipe and Lipe account for the error (a) retrospectively or (b) prospectively? The Peridot Company purchased machinery on January 2,2022 , for $970,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-IIne depreclation method and recorded $194,000 in depreclation in 2022 and 2023. Early in 2024, the company revised the total estimated life of the machinery to elght years. Required: 1. What type of change is this? 2. Is Peridot required to revise prlor years' financlal statements as a result of the change? 3. Is Peridot required to provide a disclosure note to report the change? 4. Determine depreclation for 2024
