Straightarm Inc. is a calendar year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors12/31/25 Retained Earnings is in error bySelect oneEnding inventoryDepreciation expensea $75,000O $60,000O $54,000Od $46,000O $42.0002014$15.000 understatement$6,000 understatementFailed to record Uneamed Revenue at 12/31/25 $7,000Straightorm declared a cash dividend of $11,000 on 12/31/25. No journal entry was made in 2025 The dividend was paid on 1/3/26 Straightorm debited Retained Earnings andcredited Cash2025$24,000 overstatement$12.000 understatement

Ending inventory for 2024 is understated which means that the COGS in 2024 is overstated as the…

Straightar inc is a calendar-year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following entors Ending inventory Depreciation expense 12/31/25 Retained Earnings is in error by Select one OA $75,000 Ob $60,000 O $54,000 Od $46,000 O $42.000 2024 $15.000 understatement $6,000 understatement 2025 $24,000 overstatement $12.000 understatement Failed to record Uneamed Revenue at 12/31/25 $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/25 No journal entry was made in 2025 The dividend was paid on 1/3/2 Straightorm debited Retained Earnings and credited Cash

Straightar inc is a calendar-year corporation its financial statements for the years ended 12/31/24 and 12/31/25 contained the following entors Ending inventory Depreciation expense 12/31/25 Retained Earnings is in error by Select one OA $75,000 Ob $60,000 O $54,000 Od $46,000 O $42.000 2024 $15.000 understatement $6,000 understatement 2025 $24,000 overstatement $12.000 understatement Failed to record Uneamed Revenue at 12/31/25 $7,000 Straightarm declared a cash dividend of $11,000 on 12/31/25 No journal entry was made in 2025 The dividend was paid on 1/3/2 Straightorm debited Retained Earnings and credited Cash

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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