Question
Part III ( 14 points) The reported net incomes for the first 2 years of Vaughn Products, Inc., were as follows: 2017, $134,800; 2018, $172,600.
Part III ( 14 points)
The reported net incomes for the first 2 years of Vaughn Products, Inc., were as follows: 2017, $134,800; 2018, $172,600. Early in 2019, the following errors were discovered.
- Depreciation of equipment for 2017 was overstated $17,600.
- December 31, 2017, inventory was understated $47,700.
- December 31, 2018, inventory was overstated $15,800.
Prepare the correcting entry(s) necessary when these errors are discovered as of 1/1 2019:
Ignore income tax considerations.
| General Journal | D | C |
| Retained Earnings | $38,200 | |
| Inventory | $16,100 | |
| Accumulated Depreciation (37700-15600) | 22100 |
What is the corrected net income for 2017?
What is the corrected net income for 2018?
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Auditing and Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
9th edition
1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343
