The reported net incomes for the first 2 years of Flounder Products, Inc., were as follows: 2020, $147,800: 2021. $202,000. Early in2022, the following errors were discovered.1.2.3.4.Depreciation of equipment for 2020 was overstated $15,900.Depreciation of equipment for 2021 was understated $38,300.December 31, 2020, inventory was understated $49.500.December 31, 2021, inventory was overstated $14,900.Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income taxconsiderations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entryis required, select "No Entry for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCredit

Accounting Errors: These are defined as the common unintentional mistakes made by the accountant…

The reported net incomes for the first 2 years of Flounder Products, Inc., were as follows: 2020, $147,800; 2021. $202,000. Early in 2022, the following errors were discovered. Depreciation of equipment for 2020 was overstated $15,900. Depreciation of equipment for 2021 was understated $38,300. December 31, 2020, inventory was understated $49.500. 3. 4₁ December 31, 2021, inventory was overstated $14,900. 1. 2. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

The reported net incomes for the first 2 years of Flounder Products, Inc., were as follows: 2020, $147,800; 2021. $202,000. Early in 2022, the following errors were discovered. Depreciation of equipment for 2020 was overstated $15,900. Depreciation of equipment for 2021 was understated $38,300. December 31, 2020, inventory was understated $49.500. 3. 4₁ December 31, 2021, inventory was overstated $14,900. 1. 2. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

The reported net incomes for the first 2 years of Flounder Products, Inc., were as follows: 2020, $147,800: 2021. $202,000. Early in
2022, the following errors were discovered.
1.
2.
3.
4.
Depreciation of equipment for 2020 was overstated $15,900.
Depreciation of equipment for 2021 was understated $38,300.
December 31, 2020, inventory was understated $49.500.
December 31, 2021, inventory was overstated $14,900.
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax
considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry
is required, select "No Entry for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit

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