Question: requirement 1&2 would be much appreciated. In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $356,000 cost of

requirement 1&2 would be much appreciated. In 2021, internal auditors discovered

requirement 1&2 would be much appreciated.

In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $356,000 cost of equipment purchased on January 1, 2018. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries. (Ignore income taxes) 42 Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. Net income over the period 2018 through 2020 is Retained earrings by the end of 2020 is by by and Required 2 >

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