The reported net incomes for the first 2 years of Riverbed Products, Inc., were as follows: 2025, $146,000: 2026, $191,100. Early in 2027, the following errors were discovered. 1. Depreciation of equipment for 2025 was overstated $16,400. 2. Depreciation of equipment for 2026 was understated $36,700. December 31, 2025, inventory was understated $52,600. 4. December 31, 2026, inventory was overstated $14,600. 3. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Account Titles and Explanation Debit Credit

The reported net incomes for the first 2 years of Riverbed Products, Inc., were as follows: 2025, $146,000: 2026, $191,100. Early in 2027, the following errors were discovered. 1. Depreciation of equipment for 2025 was overstated $16,400. 2. Depreciation of equipment for 2026 was understated $36,700. December 31, 2025, inventory was understated $52,600. 4. December 31, 2026, inventory was overstated $14,600. 3. Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Error Analysis and Correcting Entry) The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2017, $147,000; 2018, $185,000. Early in 2019, the following errors were discovered.1. Depreciation of equipment for 2017 was overstated $17,000.2. Depreciation of equipment for 2018 was understated $38,500.3. December 31, 2017, inventory was understated $50,000.4. December 31, 2018, inventory was overstated $16,200.InstructionsPrepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)
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