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-   -   Bishop Co. Began operations on January 1, 2010. Financial statements for 2010 and 201 (https://www.askmehelpdesk.com/showthread.php?t=570826)

  • Apr 16, 2011, 04:36 PM
    lisaalexander
    Bishop Co. began operations on January 1, 2010. Financial statements for 2010 and 201
    Bishop Co. began operations on January 1, 2010. Financial statements for 2010 and 2011 con- tained the following errors:

    Dec. 31, 2010 Dec. 31, 2011
    Ending inventory $132,000 too high $156,000 too low
    Depreciation expense 84,000 too high
    Insurance expense 60,000 too low 60,000 too high
    Prepaid insurance 60,000 too high


    In addition, on December 31, 2011 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2012. No corrections have been made for any of the errors. Ignore income tax considerations.

  • Apr 17, 2011, 07:56 AM
    pready

    So, what is your question and what have you done or attempted?

    Based on what you stated, you need to restate your financials for years 2010 and 2011.

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