In 2017, beginning inventory is overstated. What is the effect of the error on total stockholders' equity in 2018?
A) Total stockholders' equity is overstated in 2018.
B) Total stockholders' equity is understated in 2018.
C) Total stockholders' equity is correctly stated in 2018.
D) none of the above.
C
You might also like to view...
Prepare the journal entries for the following petty cash transactions of Morrison Dental Supplies
Aug. 1 Established a petty cash fund with a $200 balance. Aug 31 The petty cash fund has $43 in cash and $154 in petty cash tickets there were issued to pay for Office Expense ($75 ) and Repair Expense ($79 ). Replenished the fund and recorded the expenditures. Oct. 15 Increased the balance of the petty cash fund to $250. What will be an ideal response
Aurum Services, Inc acquired 100,000 shares of Gamma Metals, Inc on January 1, 2017
Gamma pays a cash dividend of $0.25 per share on March 2, 2017. With the current investment, Aurum Services, Inc holds 8% of Gamma. In the journal entry on March 2, 2017, ________. A) Long-term Investments-Available-for-Sale is credited B) Dividend Revenue is credited C) Long-term Investments-Held-to-Maturity is debited D) Long-term Investments-Available-for-Sale is debited