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What should be reported as correct ending

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Reference no: EM132508824

GHI Industries discovers the following pre-tax errors after preparing its 2019 financial statements:

  1. 2017 depreciation expense was overstated by $2,000
  2. 2018 sales revenue was overstated by $5,000
  3. 2019 rent expense was understated by $6,000
  4. Prior to recording any corrections, 2019 net income was calculated to be $100,000 and 2018 ending retained earnings was $300,000. GHI presents one-year on the face of its financial statements. GHI has a 20% income tax rate in all years. No dividends have ever been declared.

Question 1: What should be reported as correct 2019 ending retained earnings on the 2019 balance sheet?

Reference no: EM132508824

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