FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Suppose that Laramie Company's adjusted trial balance ignored the following information. Indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2018 Income Statement and 12/31/18 Balance Sheet. Assume no income taxes. Additional Information 12/31/18 Assets 12/31/18 Liabilities 12/31/18 Owners Equity 2018 Net Income $22,000 in depreciation on some equipment was still unrecorded
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Transcribed Image Text:Suppose that Laramie Company's adjusted trial balance ignored the following information. Indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2018 Income Statement and 12/31/18 Balance Sheet. Assume no income taxes. Additional Information 12/31/18 Assets 12/31/18 Liabilities 12/31/18 Owners Equity 2018 Net Income $22,000 in depreciation on some equipment was still unrecorded
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Step 1: Meaning of Income statement and balance sheet
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Step 2: Effect of omissions on income statement and balance sheet
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