Use the following information for questions.
Bishop Co.began operations on January 1, 2010.Financial statements for 2010 and 2011 con- tained the following errors:
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.

-The total effect of the errors on the amount of Bishop's working capital at December 31, 2011 is understated by

Question

Use the following information for questions.
Bishop Co.began operations on January 1, 2010.Financial statements for 2010 and 2011 con- tained the following errors:
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.
 
-The total effect of the errors on the amount of Bishop's working capital at December 31, 2011 is understated by

Quizplus · Accepted Answer

The working capital is understated by $184,800 due to errors in inventory and accounts payable, which affect current assets and liabilities.

Use the Following Information for Questions