Requirement:a. What is the effect of the errors on Biden's December 31, 20x2 retained earnings?net effects of the errors on Biden's 20x1 and 20x2 profit or loss, repesctively = overstated by P24,000 16. Biden Corp. reports on a calendar-year basis. Its 20x1 and 20x2financial statements contained the following errors:20x120x2Under (Over) statement of ending inventory 10,000Depreciation understatementFailure to accrue salaries at year end(4,000)4,0006,0008,00012,000(Adapted)Requirements:a.What are net effects of the errors on Biden's 20x1 and 20x2profit or loss, respectively?b. What is the effect of the errors on Biden's December 31, 20x2retained earnings?

Net profit means the difference between the income and expenses. Financial statement means the…

Requirement: a. What is the effect of the errors on Biden's December 31, 20x2 retained earnings? net effects of the errors on Biden's 20x1 and 20x2 profit or loss, repesctively = overstated by P24,000

Requirement: a. What is the effect of the errors on Biden's December 31, 20x2 retained earnings? net effects of the errors on Biden's 20x1 and 20x2 profit or loss, repesctively = overstated by P24,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14PA: Assuming a companys year-end inventory were overstated by $5,000, indicate the effect...

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