1. Eagle Corp. is a calendar-year corporation whose financial statements for 2019 and 2020 included errors as...
Fantastic news! We've Found the answer you've been seeking!
Question:
1. Eagle Corp. is a calendar-year corporation whose financial statements for 2019 and 2020 included errors as follows:
Year | Ending Inventory | Depreciation Expense | |
2019 | $36,000 overstated | $30,000 overstated | |
2020 | 12,000 understated | 10,000 understated |
Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2019 or December 31, 2020. Ignoring income taxes, by how much should Eagle's retained earnings be retrospectively adjusted at January 1, 2021?
A) $4000 decrease
B) $8000 increase
C) $2000 increase
D) $32,000 increase
2.
3. The cash provided by (used in) financing activities for 2020 was (related to question above)
$(250,000). |
$12,500. |
$100,000. |
$(225,000). |
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date: