Rickles's, Inc. is a calendar-year corporation whose financial statements for 2013 and 2014 included errors as follows:

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Year Ending Inventory Depreciation Expense

2013 $162,000 overstated $135,000 overstated

2014 64,000 understated 45,000 understated

Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2013, or December 31, 2014. Ignoring income taxes, by how much should Rickles' retained earnings be retroactively adjusted at January 1, 2015?

Related Book For answer-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

Posted Date: Jan 20, 2021 08:34 AM

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Rickles's, Inc. is a calendar-year corporation whose financial statements for 2013 and 2014 included errors as follows:

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Financial Reporting and Analysis

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