Straightarm Inc. is a calendar year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors: Faled to record Unearned 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 1/3/26; Straightarm debited Retained Earnings and credited Cash 12/31/25 Total Assets are in error by Select one O & $42.000 2025 Ending inventory $15,000 understatement $24,000 overstatement 12,000 understatement Depreciation expense 6000 understatement Ob $18,000 Oc $36,000 Od $39,000 O $57,000

Straightarm Inc. is a calendar year corporation. Its financial statements for the years ended 12/31/24 and 12/31/25 contained the following errors: Faled to record Unearned 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 1/3/26; Straightarm debited Retained Earnings and credited Cash 12/31/25 Total Assets are in error by Select one O & $42.000 2025 Ending inventory $15,000 understatement $24,000 overstatement 12,000 understatement Depreciation expense 6000 understatement Ob $18,000 Oc $36,000 Od $39,000 O $57,000

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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