Question: The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2012, $147,000; 2013, $185,000. Early in 2014, the following

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2012, $147,000; 2013, $185,000. Early in 2014, the following errors were discovered.

1. Depreciation of equipment for 2012 was overstated $19,000.
2. Depreciation of equipment for 2013 was understated $38,500.
3. December 31, 2012, inventory was understated $50,000.
4. December 31, 2013, inventory was overstated $14,200.

Instructions
Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2013 are closed. (Ignore income tax considerations.)

Step by Step Solution

★★★★★

3.28 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The correcting entry for the errors would be To corr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2021, $147,000; 2022, $185,000. Early in 2023, the following errors were discovered. 1. Depreciation of...

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2010, $147,000; 2011, $185,000. Early in 2012, the following errors were discovered. 1. Depreciation of...

The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2014, $147,000; 2015, $185,000. Early in 2016, the following errors were discovered. 1....

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2014, $147,000; 2015, $185,000. Early in 2016, the following errors were discovered. 1. Depreciation of...

Error Analysis and Correcting Entry the reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2010, $147,000; 2011, $185,000. Early in 2012, the following errors...

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2018, $147,000; 2019, $185,000. Early in 2020, the following errors were discovered. 1. Depreciation of...

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2012, $147,000; 2013, $185,000. Early in 2014, the following errors were discovered. 1.Depreciation of...

The reported net incomes for the first 2 years of Sinclair Products, Inc., were as follows: 2010, $147,000; 2011, $185,000. Early in 2012, the following errors were discovered. 1. Depreciation of...

The reported net incomes for the first 2 years of Concord Products, Inc., were as follows: 2017, $160,800; 2018, $175,800. Early in 2019, the following errors were discovered. The reported net...

What are the major strategies and why is it important to implement business continuity in todays organizations?

To water seedlings, a gardener joins three lengths of pipe, AB, BC, and CD, fitted with spray nozzles and suspends the assembly using hinged supports at A and D and cable EF. Knowing that the pipe...

In preparing monthly bills to be sent to individual credit customers, the billing department will use the accounts payable subsidiary ledger, rather than the general ledger. Question 1 7 options: A )...

Spend some time editing the performance review letter presented in Case 7.2. When done, ask someone who has not read the case to read your edited letter and describe the personnel issue. If your...

What is a loss contingency? What criteria have to be met for a company to accrue a loss contingency? If these criteria are not met, how does a company disclose a loss contingency?

Why is it necessary for a company to disclose subsequent events? What kinds of subsequent events are disclosed by an adjustment to the companys financial statements and what kinds are disclosed in a...

What must a company disclose for related party transactions?

Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval of approved, Big...

question6. Table 1 Price at the beginning of Per year the year dividends Year 2017 2018 2019 2020 42.1 50.0 3.00 4.50 5.00 72.0 65.0 Given the information in table 1, calculate the total return for...

1.The greatest advantage of humans is that we integrate our reptilian, mammal and human/cognitive aspects of the brain very well True False 2.Arthur Koestler argued that people are primarily social...