Accrued salaries payable of $97,000 were not recorded at December 31, 2020. Office supplies on...
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Accounting
Accrued salaries payable of $97,000 were not recorded at December 31, 2020. Office supplies on hand of $53,000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. An effect of these two errors would cause
2020 net income to be overstated $44,000.
2020 net income and December 31, 2020 retained earnings to be understated $102,000 each.
2021 net income to be understated $150,000.
2021 net income and December 31, 2021 retained earnings to be understated $58,000 each.
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