At the End of December 2020 When Preparing the Financial

question 23

Essay

At the end of December 2020 when preparing the financial statements, the accountant forgot to make the adjusting entry related to the depreciation of the capital assets.
Instructions
Explain the effect of the error on the Statement of Income and Statement of Financial Position for 2020 and 2021. Assume the error was not discovered and was not corrected in 2021.

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Definitions:

Catatonic Stupor

A severe type of catatonia marked by immobility, mutism, and the inability to respond to external stimuli.

Prodromal Phase

A preliminary stage of a disease, indicating the onset of symptoms but not yet fully developed illness.

Active Phase

A period in which symptoms of a disease or condition are more pronounced and readily observable.

Residual Phase

A stage in certain mental health disorders marked by a reduction in the severity of symptoms, following an acute phase of the condition.