ії. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 201141 Ending Inventory Depreciation Expense 2010 $3,000 overstated S8,000 overstated $2,000 understated| $6,000 overstated Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by how much will retained earnings at December 31, 2011 be overstated or understated? a. $1,000 understated b. $5,000 overstated c. S5,000 understated d. $9,000 understated

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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ії. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and
2010 contained errors as follows:
201141
Ending Inventory
Depreciation Expense
2010
$3,000 overstated S8,000 overstated
$2,000 understated| $6,000 overstated
Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by
how much will retained earnings at December 31, 2011 be overstated or understated?
a. $1,000 understated
b. $5,000 overstated
c. S5,000 understated
d. $9,000 understated
Transcribed Image Text:ії. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 201141 Ending Inventory Depreciation Expense 2010 $3,000 overstated S8,000 overstated $2,000 understated| $6,000 overstated Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by how much will retained earnings at December 31, 2011 be overstated or understated? a. $1,000 understated b. $5,000 overstated c. S5,000 understated d. $9,000 understated
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