Correction of errors in prior years
Goldfinch Inc. reported net incomes for the last three years as follows: In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made: Instructions
a) Calculate corrected net incomes for 2018, 2019, and 2020.
b) Prepare the entry required in 2021 to correct the books. Ignore income taxes.
Show any calculations.

Question

Correction of errors in prior years
Goldfinch Inc. reported net incomes for the last three years as follows:  In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made:  Instructions 
a) Calculate corrected net incomes for 2018, 2019, and 2020.
b) Prepare the entry required in 2021 to correct the books. Ignore income taxes.
Show any calculations.

Quizplus · Accepted Answer

The Answer of Correction of errors in prior years
Goldfinch Inc. reported net incomes for the last three years as follows:  In reviewing the accounts in 2021 (after the books for the prior year had been closed), you find that the following errors have been made:  Instructions 
a) Calculate corrected net incomes for 2018, 2019, and 2020.
b) Prepare the entry required in 2021 to correct the books. Ignore income taxes.
Show any calculations.

Correction of Errors in Prior Years