Failure to record accrued interest on notes payable

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Reference no: EM13145047

When the records of Archibald corporation were reviewed at the close of 2013, the errors listed below were discovered. For each item, indicate whether the error resulted in an overstatement, understatement, or had no effect on net income for the years 2012 and 2013.
(1) Failure to reflect supplies on hand on balance sheet at the end of 2012. (2) Failure to record the correct amount of ending 2012 inventory. The amount was understated because of an error in calculation. (3) Failure to record merchandise purchased in 2012. Merchandise was also omitted from ending inventory in 2012 but was not yet sold. (4) Failure to record accrued interest on notes payable in 2012; that amount was recorded when paid in 2013. (5) Failure to record amortization of patent in 2013.

Reference no: EM13145047

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