What is the adjusted net income/loss in 2021? For net loss please put minus sign before the amount of net loss. ( Example -100,000 )*
What is the adjusted net income/loss in 2021? For net loss please put minus sign before the amount of net loss. ( Example -100,000 )*
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 10P: At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2...
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2. What is the adjusted net income/loss in 2021? For net loss please put minus sign before the amount of net loss. ( Example -100,000 )*
Transcribed Image Text:For three years Chona's Merchandise failed to recognize accruals, prepayments and other transactions
in its accounts. Reported net income and a listing of the errors appear below:
2018
2019
2020
(100,000)
Reported Net Income (Loss)
1,200,000
400,000
a.
Failed to record accrued expenses
20,000
25,000
48,000
b.
Failed to record accrued salaries
13,000
18,000
C.
12,000
15,000
15,000
Understated depreciation expense
Overstated ending inventories
d.
36,000
28,000
e.
Failed to record purchase on account;
40,000
merchandise properly included in ending
inventory
f.
3,000
4,000
Failed to recognize unused supplies at the end
of the accounting period
8-
60,000
Failed to recognize gain on sale of land; Land
credited for amount of proceeds.
h.
5,000
9,000
Failed to recognize unearned revenue at end
of accounting period.
П
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