32 On 12/31/2, the Cheboygan Company paid $4.000 ot prepaid murance and experied the amount. The polley covered the period 1122 to 1271/26 The error was discovered on 1/10/27, the 2006 books we doved The correcting journal entry wide what entry to 1/17 Retained Earnings! ed ou tion Sector O $3.000 debit 53000 credit O 51.000 debit Od 51,000 credit De No journal entry needed 433 Straightarm Inc. is a calendar year corporation. Its financial statements for the years ended 12/21/24 and 12/31/25 contained the following errors Buff 2021 Ending inventory Depreciation expense $15.000 understatement $6.000 understatement 2023 5000 overstatement $22.000 understatement Failed to record Unearned Revenue at 12/31/25: $7.000 Straightarm dedared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025. The dividend was paid on 1/3/26: Straightarm debited Retained Earnings and credited Cash 2026 Net Income is in error by Select one $31.000 08524000 O $21.000 O d. $12,000 o e $20,000 32 On 12/31/2, the Cheboygan Company paid $4.000 ot prepaid murance and experied the amount. The polley covered the period 1122 to 1271/26 The error was discovered on 1/10/27, the 2006 books we doved The correcting journal entry wide what entry to 1/17 Retained Earnings! ed ou tion Sector O $3.000 debit 53000 credit O 51.000 debit Od 51,000 credit De No journal entry needed 433 Straightarm Inc. is a calendar year corporation. Its financial statements for the years ended 12/21/24 and 12/31/25 contained the following errors Buff 2021 Ending inventory Depreciation expense $15.000 understatement $6.000 understatement 2023 5000 overstatement $22.000 understatement Failed to record Unearned Revenue at 12/31/25: $7.000 Straightarm dedared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025. The dividend was paid on 1/3/26: Straightarm debited Retained Earnings and credited Cash 2026 Net Income is in error by Select one $31.000 08524000 O $21.000 O d. $12,000 o e $20,000