The reported net incomes for the fırst 2 years of Pina Products, Inc., were as follows: 2021, $133,000; 2022, $184,000. Early in2023, the following errors were discovered.1.Depreciation of equipment for 2021 was overstated $18,000.2.Depreciation of equipment for 2022 was understated $32,500.3.December 31, 2021, inventory was understated $55,000.4.December 31, 2022, inventory was overstated $14,200.Prepare the correcting entry necessary when these errors are discovered. Assume that the books for 2022 are closed. (Ignore incometax considerations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCredit

The reported net incomes for the first 2 years of Pina Products, Inc., were as follows: 2021, $133,000; 2022, $184,000. Early in 2023, the following errors were discovered. 1. Depreciation of equipment for 2021 was overstated $18,000. 2. Depreciation of equipment for 2022 was understated $32,500. 3. December 31, 2021, inventory was understated $55,000. 4. December 31, 2022, inventory was overstated $14,200.

The reported net incomes for the first 2 years of Pina Products, Inc., were as follows: 2021, $133,000; 2022, $184,000. Early in 2023, the following errors were discovered. 1. Depreciation of equipment for 2021 was overstated $18,000. 2. Depreciation of equipment for 2022 was understated $32,500. 3. December 31, 2021, inventory was understated $55,000. 4. December 31, 2022, inventory was overstated $14,200.

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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