For 1A & 1B, either No effect, Understated, Overstated

During 2018, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: 2016 understated by overstated by $120,000 150,000 2017 WMC uses the periodic inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2016 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 1-b. Determine the effect of 2017 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error made in 2017 Complete this question by entering your answers in the tabs below. Req 2 Req 1A Req 1B Determine the effect of 2016 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) (If the answers is no effect then select "No effect" in the dropdown.) 2016 2016 effect on 2017 Beginning inventory Plus: net purchases Less: ending inventory Beginning inventory Plus: net purchases Less: ending inventory Cost of goods sold Cost of goods sold Revenues Revenues Less: cost of goods sold Less: other expenses Less: cost of goods sold Less: other expenses Net income Net income Retained eamings Retained earnings Req 1A Req 1B > During 2018, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts $120,000 150,000 2016 understated by 2017 overstated by WMC uses the periodic inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2016 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 1-b. Determine the effect of 2017 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error made in 2017. Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2 Determine the effect of 2017 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) (If the answers is no effect then select "No effect in the dropdown.) 2017 Beginning inventory Plus: net purchases Less: ending inventory Cost of goods sold Revenues Less: cost of goods sold Less: other expenses Net income Retained earnings Req 1A Req 2 During 2018, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: $120,000 150,000 2016 understated by 2017 overstated by WMC uses the periodic inventory system and the FIFO cost method. Required: 1-a. Determine the effect of 2016 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 1-b. Determine the effect of 2017 errors on retained earnings at January 1, 2018, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error made in 2017. Complete this question by entering your answers in the tabs below. Req 1B Req 1A Req 2 Prepare a journal entry to correct the error made in 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field .) View transaction list Journal entry worksheet 1 Record correction of error Note: Enter debits before credits. Debit Credit Event General Journal