Sheridan Tool Company’s December 31 year-end financial statements contained the following errors.December 31, 2017December 31, 2018Ending inventory$9,000 understated$8,000 overstatedDepreciation expense$2,500 understated—An insurance premium of $60,300 was prepaid in 2017 covering the years 2017, 2018, and 2019. The entire amount was charged to expense in 2017. In addition, on December 31, 2018, fully depreciated machinery was sold for $16,000 cash, but the entry was not recorded until 2019. There were no other errors during 2017 or 2018, and no corrections have been made for any of the errors. (Ignore income tax considerations.) (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)(a) Compute the total effect of the errors on 2018 net income.Total effect of errors on net income$(b) Compute the total effect of the errors on the amount of Sheridan’s working capital at December 31, 2018.Total effect on working capital$(c) Compute the total effect of the errors on the balance of Sheridan’s retained earnings at December 31, 2018.Total effect on retained earnings$Click if you would like to Show Work for this question:Open Show Work
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.