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In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021 2020 2019 Items not recognized Prepaid expenses $1,300 $900
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation.
2021
2020
2019
Items not recognized
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at 12/31
22,000
17,000
15,000
Before corrections, indicate the error in 12/31/20 Working Capital:
Select one:
a.$450 overstated
b.$200 understated
c.$200 overstated
d.$450 understated
e.No Error
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