A small business recently discovered that a material error in payroll resulted in the company not recording overtime paid in the last year's financial statement. The unpaid overtime was for $13,000. The company's income tax rate is 20% What is a part of the current year's journal entry to correct the material error on last year's financial statements? O Credit Retained Earnings for $13,000 Debit Retained Earnings for $10,400 O Debit Net Income for $10,400 O Credit Net Income for $13,000
A small business recently discovered that a material error in payroll resulted in the company not recording overtime paid in the last year's financial statement. The unpaid overtime was for $13,000. The company's income tax rate is 20% What is a part of the current year's journal entry to correct the material error on last year's financial statements? O Credit Retained Earnings for $13,000 Debit Retained Earnings for $10,400 O Debit Net Income for $10,400 O Credit Net Income for $13,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 26CE: Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $500,000. The...
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A small business recently discovered that a material error in payroll resulted in the company not recording overtime paid in the last year's financial statement. The unpaid overtime was for $13,000 The company's income tax rate is 20%
What is a part of the current year's journal entry to correct the material error on last year's financial statements?
Ⓒ Credit Retained Earnings for $13,000
O Debit Retained Earnings for $10,400
O Debit Net Income for $10,400
O Credit Net Income for $13,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb6c008bc-63e1-4097-bda5-a2051b7d7428%2F9bee610d-62d6-4a6a-a8fc-894fae4ecb67%2Fw3x3z37_processed.png&w=3840&q=75)
Transcribed Image Text:17
A small business recently discovered that a material error in payroll resulted in the company not recording overtime paid in the last year's financial statement. The unpaid overtime was for $13,000 The company's income tax rate is 20%
What is a part of the current year's journal entry to correct the material error on last year's financial statements?
Ⓒ Credit Retained Earnings for $13,000
O Debit Retained Earnings for $10,400
O Debit Net Income for $10,400
O Credit Net Income for $13,000
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