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The balance sheet of Montana Corporation on December 31, 2019: These errors were made on December 31, 2018 and were not corrected: ending inventory understated
The balance sheet of Montana Corporation on December 31, 2019: These errors were made on December 31, 2018 and were not corrected: ending inventory understated $2,400; accrued revenue of $2,100 omitted, and prepaid expense of $2,000 omitted. On December 31, 2019, the inventory was understated $5,000, unearned revenue of $1,800 was omitted, and accrued expense of $600 was omitted. The net income shown by the books for 2019 was $13,200. The correct 2019 Net Income (Loss) is:
Montana Corporation BALANCE SHEET AS OF DECEMBER 31, 2019 Assets Cash Accounts and notes receivable Inventory $40.000 30,000 90.000 $160.000 Liabilities and Capital Accounts and notes payable Common Stock Retained Earnings $20,000 100,000 40.000 $160.000Step by Step Solution
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