Error and Error analysis: It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown. Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

Question

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Answer 1

Question

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

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Answer 2

Question

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Answer 6

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

Answer 7

Chapter 21, Problem 21.8E

a.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Analysis of errors over the two years, recommend any correcting entries required to correct the inventory error, and comment on the effect of the error on gross profit.

Answer 8

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Answer 9

b.

To determine

Error and Error analysis:

It refers to a mistake that happened due to the wrong application of accounting policy and method. Correction of error is made with the retrospective method and the changes in retained earnings as prior period adjustments are shown.

Correcting entries if LLC discovered the error in 2023 after the closing of the books for 2022.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3Q Ch. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - Prob. 21.8Q Ch. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...

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Chapter 21 Solutions