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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 |
Restated 2022 Net Income will be:
Select one:
a. $350 overstated
b. $350 understated
c. $150 understated
d. $150 overstated
e. No Error
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