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Prepare correcting entry necessary when errors discovered

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Reference no: EM132448283

Question - The reported net incomes for the first 2 years of Whispering Products, Inc., were as follows:

2017, $160,800;

2018, $175,800.

Early in 2019, the following errors were discovered.

1. Depreciation of equipment for 2017 was overstated $17,600.

2. Depreciation of equipment for 2018 was understated $37,400.

3. December 31, 2017, inventory was understated $45,000.

4. December 31, 2018, inventory was overstated $16,400.

Required - Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)

Reference no: EM132448283

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