Solution-What amount should be reported as net effect of

What amount should be reported as net effect of the errors

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Reference no: EM133054004

Question - Saturn Company reported the following errors:

	2020	2021
Ending inventory	50,000 understated	100,000 overstated
Depreciation expense	150,000 overstated	200,000 overstated

None of the errors were detected or corrected and that no additional errors were made in 2022.

Required -

1. What amount should be reported as net effect of the errors on retained earnings on December 31, 2021?

a. 150,000 overstated

b. 150,000 understated

c. 250,000 overstated

d. 250,000 understated

2. By what amount would current assets on December 31, 2022 be overstated or understated?

a. 100,000 understated

b. 100,000 overstated

c. 50,000 overstated

d. 0

Reference no: EM133054004

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What amount should be reported as net effect of the errors

Reference no: EM133054004

Reference no: EM133054004

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