2026543843 2026543843

11-10-2022
Business

Answered

5-2) Bettner, Inc., is a calendar-year corporation whose financial statements for 20X0 and 20X1 included errors as follows: Year 20X0 20X1 Ending Inventory $12,000 overstated 8,000 understated Depreciation Expense $22,300 overstated 6,000 understated Assume that inventory purchases were recorded correctly and that no correcting entries were made at December 31, 20X0, or December 31, 20X1. The errors were discovered in 20X2, 2007 after the 20X1 financial statements were issued. Required: 1. Ignoring income taxes, prepare the journal entry Bettner would make in 20X2 to correct the errors. 2. Describe the content of the comparative periods in Bettner's 20X2 financial statements. That is, how is the correction reflected in the 20X2 financial report?

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