In 2021, Antiques, Inc. incorrectly recorded ending inventory as $1,200,000 instead of $800,000. The controller discovered the error in 2023 when reviewing final entries for 2022 financial statements. The books are not closed in 2022. The 2022 ending inventory amount was correct. The tax rate for all years is 40%. Which one of the following entries is correctly written and dated? Group of answer choices December 31, 2022 ​ ​ Retained Earnings-Prior Period Adj. 240,000 ​ Income Tax Receivable 160,000 ​ Inventory ​ 400,000 December 31, 2022 ​ ​ Inventory 400,000 ​ Income Tax Payable ​ 160,000 Retained Earnings-Prior Period Adj. ​ 240,000 December 31, 2021 ​ ​ Retained Earnings-Prior Period Adj. 240,000 ​ Income Tax Receivable 160,000 ​ Inventory ​ 400,000 January 1, 2023 ​ ​ Inventory 400,000 ​ Income Tax Payable ​ 160,000 Retained Earnings-Prior Period Adj. ​ 240,000        PreviousNext

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...
icon
Related questions
Question
In 2021, Antiques, Inc. incorrectly recorded ending inventory as $1,200,000 instead of $800,000. The controller discovered the error in 2023 when reviewing final entries for 2022 financial statements. The books are not closed in 2022. The 2022 ending inventory amount was correct. The tax rate for all years is 40%. Which one of the following entries is correctly written and dated?
Group of answer choices
December 31, 2022
Retained Earnings-Prior Period Adj. 240,000
Income Tax Receivable 160,000
Inventory 400,000
December 31, 2022
Inventory 400,000
Income Tax Payable 160,000
Retained Earnings-Prior Period Adj. 240,000
December 31, 2021
Retained Earnings-Prior Period Adj. 240,000
Income Tax Receivable 160,000
Inventory 400,000
January 1, 2023
Inventory 400,000
Income Tax Payable 160,000
Retained Earnings-Prior Period Adj. 240,000
 
 
 
 PreviousNext 
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College