In 2021, Antiques, Inc. incorrectly recorded ending inventory as $1,200,000 instead of $800,000. The controller discovered the error in 2023 when reviewing final entries for 2022 financial statements. The books are not closed in 2022. The 2022 ending inventory amount was correct. The tax rate for all years is 40%. Which one of the following entries is correctly written and dated? Group of answer choices December 31, 2022 Retained Earnings-Prior Period Adj. 240,000 Income Tax Receivable 160,000 Inventory 400,000 December 31, 2022 Inventory 400,000 Income Tax Payable 160,000 Retained Earnings-Prior Period Adj. 240,000 December 31, 2021 Retained Earnings-Prior Period Adj. 240,000 Income Tax Receivable 160,000 Inventory 400,000 January 1, 2023 Inventory 400,000 Income Tax Payable 160,000 Retained Earnings-Prior Period Adj. 240,000 PreviousNext
In 2021, Antiques, Inc. incorrectly recorded ending inventory as $1,200,000 instead of $800,000. The controller discovered the error in 2023 when reviewing final entries for 2022 financial statements. The books are not closed in 2022. The 2022 ending inventory amount was correct. The tax rate for all years is 40%. Which one of the following entries is correctly written and dated? Group of answer choices December 31, 2022 Retained Earnings-Prior Period Adj. 240,000 Income Tax Receivable 160,000 Inventory 400,000 December 31, 2022 Inventory 400,000 Income Tax Payable 160,000 Retained Earnings-Prior Period Adj. 240,000 December 31, 2021 Retained Earnings-Prior Period Adj. 240,000 Income Tax Receivable 160,000 Inventory 400,000 January 1, 2023 Inventory 400,000 Income Tax Payable 160,000 Retained Earnings-Prior Period Adj. 240,000 PreviousNext
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...
Related questions
Question
In 2021, Antiques, Inc. incorrectly recorded ending inventory as $1,200,000 instead of $800,000. The controller discovered the error in 2023 when reviewing final entries for 2022 financial statements. The books are not closed in 2022. The 2022 ending inventory amount was correct. The tax rate for all years is 40%. Which one of the following entries is correctly written and dated?
Group of answer choices
| December 31, 2022 | | |
| 240,000 | | |
| Income Tax Receivable | 160,000 | |
| Inventory | | 400,000 |
| December 31, 2022 | | |
| Inventory | 400,000 | |
| Income Tax Payable | | 160,000 |
| Retained Earnings-Prior Period Adj. | | 240,000 |
| December 31, 2021 | | |
| Retained Earnings-Prior Period Adj. | 240,000 | |
| Income Tax Receivable | 160,000 | |
| Inventory | | 400,000 |
| January 1, 2023 | | |
| Inventory | 400,000 | |
| Income Tax Payable | | 160,000 |
| Retained Earnings-Prior Period Adj. | | 240,000 |
PreviousNext
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