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In 2024, the controller of Sytec Corporation discovered that $50,000 of inventory purchases were incorrectly charged to advertising expense in 2023. In addition, the 2023 year-end inventory count failed to include $34,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) Retained earnings would be by Required 1 Required 2 >

In 2024, the controller of Sytec Corporation discovered that $50,000 of inventory purchases were incorrectly charged to advertising expense in 2023. In addition, the 2023 year-end inventory count failed to include $34,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) Retained earnings would be by Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2024, the controller of Sytec Corporation discovered that $50,000 of inventory purchases were incorrectly charged to advertising expense in 2023. In addition, the 2023 year-end inventory count failed to include $34,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) Retained earnings would be by < Required 1 Required 2 >
Transcribed Image Text:In 2024, the controller of Sytec Corporation discovered that $50,000 of inventory purchases were incorrectly charged to advertising expense in 2023. In addition, the 2023 year-end inventory count failed to include $34,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of the errors on retained earnings at January 1, 2024. (Ignore income taxes.) Retained earnings would be by < Required 1 Required 2 >
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