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Rasek [7]
3 years ago
6

"2016: Ending inventory was overstated by $60,000 while depreciation expense was overstated by $25,400. 2017: Ending inventory w

as understated by $6,500 while depreciation expense was understated by $4,800. By how much should retained earnings be adjusted on January 1, 2018?"
Business
1 answer:
liberstina [14]3 years ago
5 0

Answer:

$25,800 increase

Explanation:

The computation of the adjusted retained earning balance is shown below:

Ending inventory was overstated - no change

Add: Depreciation expense was overstated         $24,100

Add: Ending inventory was understated               $6,500

Less: Depreciation expense was understated     ($4,800)

Adjusted retained earning balance                     $25,800

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Answer:

$228,000

Explanation:

Preparation of the operating activities section of the statement of cash flows for 2017 for Sosa Company

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Answer:

a. intrinsic rewards

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