The following presents Echo Mike Sound Systems$?$ ?draft financial statements for December $2024,$ ?with comparative figures for $2023.$ ?Amounts are in $$000?$s$.$

During $2024(2023),$ ?the company declared and paid $$1,750,000($$$1,674,000)$ ?of dividends.

Required:

Before the above financial statements were finalized and issued, management found another sales invoice of $$100,000$ ?dated December $29,2024.$ ?Describe how this information should be reflected in Echo Mike$?$s financial statements. Ignore the effect of income taxes.

The company omitted to record a $$350,000$ ?account payable for goods purchased in the $2023$ ?fiscal year. The inventory was correctly accounted for, and the payable was recorded and paid during the $2024$ ?fiscal year. Identify the effect of this information on the financial statements for $2023$ ?and $2024,$ ?and record any journal entries required.

Identify two articulation errors in the financial statements above.

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Balance Sheet as at December 31 2024 2023 2024 2023 Cash $ 280 $ 350 Accounts $2,050 $1,900 payable Accounts receivable (gross) 3,500 3,000 Current portion 500 500 of long-term debt Less: allowance (70) (60) Current liabilities 2,550 2,400 for doubtful accts Inventories 1,330 1,230 Long-term debt 1,500 2,000 Current assets 5,040 4,520 Total liabilities 4,050 4,400 Land Plant and equipment (net) 800 800 Preferred shares 600 2,500 2,890 Common shares 1,500 1,500 Goodwill 320 320 Retained 2,510 2,630 earnings. Non-current 3,620 4,010 Total equity 4,610 4,130 assets Total assets $8,660 $8,530 Total liabilities $8,660 $8,530 and equity Cash flow statement for the year ended December 31 2024 2023 Cash flow from operating activities 1,604 1,400 Cash flow from investing activities (100) (700) Cash flow from financing activities (1.674) (550) Cash flow from financing activities Net change in cash Cash, January 1 Cash, December 31 Revenue (1,674) (550). (170) 150 450 300 : 280 450 Income statement for the year ended December 31 2024 2023 $15,900 $14,200 Operating expenses (13,500) (12,300) Interest expense (180) (200) Earnings before tax 2,220 1,700 Operating expenses (13,500) (12,300) Interest expense (180) (200) Earnings before tax 2,220 1,700 Income taxes Net income (666) (510) $1,554 $1.190 During 2024 (2023), the company declared and paid $1,750,000 ($1,674,000) of dividends. Required: a. Before the above financial statements were finalized and issued, management found another sales invoice of $100,000 dated December 29, 2024. Describe how this information should be reflected in Echo Mike's financial statements. Ignore the effect of income taxes. b. The company omitted to record a $350,000 account payable for goods purchased in the 2023 fiscal year. The inventory was correctly accounted for, and the payable was recorded and paid during the 2024 fiscal year. Balance Sheet as at December 31 2024 2023 2024 2023 Cash $ 280 $ 350 Accounts $2,050 $1,900 payable Accounts receivable (gross) 3,500 3,000 Current portion 500 500 of long-term debt Less: allowance (70) (60) Current liabilities 2,550 2,400 for doubtful accts Inventories 1,330 1,230 Long-term debt 1,500 2,000 Current assets 5,040 4,520 Total liabilities 4,050 4,400 Land Plant and equipment (net) 800 800 Preferred shares 600 2,500 2,890 Common shares 1,500 1,500 Goodwill 320 320 Retained 2,510 2,630 earnings. Non-current 3,620 4,010 Total equity 4,610 4,130 assets Total assets $8,660 $8,530 Total liabilities $8,660 $8,530 and equity Cash flow statement for the year ended December 31 2024 2023 Cash flow from operating activities 1,604 1,400 Cash flow from investing activities (100) (700) Cash flow from financing activities (1.674) (550) Cash flow from financing activities Net change in cash Cash, January 1 Cash, December 31 Revenue (1,674) (550). (170) 150 450 300 : 280 450 Income statement for the year ended December 31 2024 2023 $15,900 $14,200 Operating expenses (13,500) (12,300) Interest expense (180) (200) Earnings before tax 2,220 1,700 Operating expenses (13,500) (12,300) Interest expense (180) (200) Earnings before tax 2,220 1,700 Income taxes Net income (666) (510) $1,554 $1.190 During 2024 (2023), the company declared and paid $1,750,000 ($1,674,000) of dividends. Required: a. Before the above financial statements were finalized and issued, management found another sales invoice of $100,000 dated December 29, 2024. Describe how this information should be reflected in Echo Mike's financial statements. Ignore the effect of income taxes. b. The company omitted to record a $350,000 account payable for goods purchased in the 2023 fiscal year. The inventory was correctly accounted for, and the payable was recorded and paid during the 2024 fiscal year.