Effects of Errors on Net Income

question 48

Essay

Effects of errors on net income
Hummingbird Corp. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: In addition, on December 26, 2020, fully depreciated equipment was sold for $ 19,000, but the sale was not recorded until 2021. No corrections have been made for any of the errors.
Instructions
Ignoring income tax, show your calculation of the total effect of the errors on 2020 net income.

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Definitions:

Bidirectional

An object that moves in two directions.

Like Charges

Charges that are the same, either both positive or both negative, which repel each other according to Coulomb's law.

Attraction

The force that draws two objects toward each other, such as the electromagnetic force between oppositely charged particles or between magnetic poles.

Repulsion

A force that pushes objects away from each other, often used in the context of magnetic fields where like poles repel.