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Sloan CPA is auditing the financial statements of Wallen Company for the year ended on...

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Accounting

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Sloan CPA is auditing the financial statements of Wallen Company for the year ended on December 31, 20x7. The following is a summary of the uncorrected misstatements that Sloan has identified during the past three years. These misstatements are immaterial and have related to isolated matters. A positive amount indicates that the misstatement overstates the related line item. For example, the net income is overstated by S62,500 in 20X4. During the most recent audit for 20X7, Sloan concluded that expenses totaling $67,000 were recognized in January of 20X8 (when Wallen paid them) but should have been recognized in 20x7. For the purpose of this question, assume that the income tax rate is 35%. Please do not use comma in the numbers of your response. Effect on net Effect on Effect on income assets liabilities Effect on equity 20X4 62,500 90,000 27.500 62,500 20X5 22.700 35,100 12.400 22,700 20X6 (43,000) (43,000) 0 (43,000) . Under the iron curtain At the end of 20x7. under the rollover method, the misstatement of net income is S method, the misstatement of net income iss

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