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    "question_id": "11704885",
    "url": "\/study-help\/questions\/six-above-companys-december-31-yearend-financial-statements-contained-the-11704885",
    "question_creation_date_js": "2024-09-19T00:16:06-04:00",
    "question_creation_date": "Sep 19, 2024 12:16 AM",
    "meta_title": "[Solved] Six Above Companys December 31 year-end f | SolutionInn",
    "meta_description": "Answer of - Six Above Companys December 31 year-end financial statements contained the following errors. December 31, 2013 Decembe | SolutionInn",
    "meta_keywords": "six,companys,december,31,year-end,financial,statements,contained,errors,2013,2014,ending",
    "question_title_h1": "Six Above Companys December 31 year-end financial statements contained the following errors. December 31, 2013 December 31, 2014 Ending inventory $15,600 overstated $36,000 overstated Depreciation",
    "question_title": "Six Above Companys December 31 year-end financial statements contained the following errors.",
    "question_title_for_js_snippet": "Six Above Companys December 31 year end financial statements contained the following errors  December 31, 2013 December 31, 2014 Ending inventory $15,600 overstated $36,000 overstated Depreciation expense $21,500 understated Rent of $165,000 was prepaid in 2014 covering the 12 month period beginning July 1, 2014  The entire amount was charged to expense in 2014  In addition, on December 31, 2014, vacant land was sold for $65,000 cash ($5,000 cost), but the entry was not recorded until 2015  There were no other errors during 2013 or 2014, and no corrections have been made for any of the errors  (Ignore income tax considerations ) 7 Instructions (a) Compute the total effect of the errors on 2015 net income  (b) Compute the total effect of the errors on the amount of Six Above Companys working capital at December 31, 2015  (c) Compute the total effect of the errors on the balance of Six Above Companys retained earnings at December 31, 2015 ",
    "question_description": "<p><strong> <\/strong>Six Above Companys December 31 year-end financial statements contained the following errors.<\/p> <p> <\/p> <p> December 31, 2013 December 31, 2014<\/p> <p>Ending inventory $15,600 overstated $36,000 overstated<\/p> <p>Depreciation expense $21,500 understated <\/p> <p> <\/p> <p>Rent of $165,000 was prepaid in 2014 covering the 12-month period beginning July 1, 2014. The entire<\/p> <p>amount was charged to expense in 2014. In addition, on December 31, 2014, vacant land was sold for<\/p> <p>$65,000 cash ($5,000 cost), but the entry was not recorded until 2015. There were no other errors during<\/p> <p>2013 or 2014, and no corrections have been made for any of the errors. (Ignore income tax<\/p> <p>considerations.)<strong>7<\/strong><\/p> <p><strong>Instructions<\/strong><\/p> <p><strong>(a)<\/strong> Compute the total effect of the errors on 2015 net income.<\/p> <p><strong>(b)<\/strong> Compute the total effect of the errors on the amount of Six Above Companys working capital at<\/p> <p>December 31, 2015.<\/p> <p><strong>(c)<\/strong> Compute the total effect of the errors on the balance of Six Above Companys retained earnings at<\/p> <p>December 31, 2015.<\/p> <p> <\/p> <p> <\/p> <p> <\/p> <p> <\/p> <p> <\/p> <p> <\/p>",
    "transcribed_text": "",
    "related_book": {
        "title": "Intermediate Accounting",
        "isbn": "032459237X, 978-0324592375",
        "edition": "17th Edition",
        "authors": "James D. Stice, Earl K. Stice, Fred Skousen",
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        "uri": "\/textbooks\/intermediate-accounting-17th-edition-92",
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    "question_posted": "2024-09-19 00:16:06",
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