Powell Company had the following errors over the last two years: 2011: Ending inventory was overstated by
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Question:
Powell Company had the following errors over the last two years:
2011: Ending inventory was overstated by $30,000 while depreciation expense was overstated by $24,000. 2012: Ending inventory was understated by $5,000 while depreciation expense was understated by $4,000.
By how much should retained earnings be adjusted on January 1, 2013? (Ignore taxes)
A. Increase by $15,000.
B. Decrease by $25,000.
C. Decrease by $6,000.
D. Increase by $25,000.
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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