3. Lumber Company's auditors were auditing its Financial Statements and had the following observations. 2020 2021 Ending inventory Overstated Depreciation expense $24,000 Overstated Overstated $12,000 Understated $18,000 $14,000 Assuming that none of the above errors were detected or corrected, by what amount will retained earnings at December 31, 2021 be misstated?
3. Lumber Company's auditors were auditing its Financial Statements and had the following observations. 2020 2021 Ending inventory Overstated Depreciation expense $24,000 Overstated Overstated $12,000 Understated $18,000 $14,000 Assuming that none of the above errors were detected or corrected, by what amount will retained earnings at December 31, 2021 be misstated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Lumber Company's auditors were auditing its Financial Statements
and had the following observations.
2020
2021
Ending inventory
Overstated
Depreciation expense $24,000 Overstated
Overstated
$12,000 Understated $18,000
$14,000
Assuming that none of the above errors were detected or
corrected, by what amount will retained earnings at December 31,
2021 be misstated?
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