Question: Taylor Corporation discovered in 2017 that it had incorrectly recorded

Taylor Corporation discovered in 2017 that it had incorrectly recorded in 2016 a cash payment of $50,000 for utilities expense. The correct amount of the utilities expense was $60,000.
Requirements
1. Determine the effect of the error on the accounting equation in 2016.
2. How should this error be reported in the 2017 financial statements?



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  • CreatedJune 15, 2015
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