Use the following information for questions.
Fairfax Inc.began operations on January 1, 2016.Financial statements for 2016 and 2017 contained the following errors: In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was NOT recorded until 2018.No corrections have been made for any of the errors.Ignore income tax considerations.
-The total effect of the errors on Fairfax's retained earnings at December 31, 2017 is that the balance is understated by
A)$82,200.
B)$67,200.
C)$46,200.
D)$34,200.

Question

Use the following information for questions.
Fairfax Inc.began operations on January 1, 2016.Financial statements for 2016 and 2017 contained the following errors:  In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was NOT recorded until 2018.No corrections have been made for any of the errors.Ignore income tax considerations.
-The total effect of the errors on Fairfax's retained earnings at December 31, 2017 is that the balance is understated by
A)$82,200. 
B)$67,200. 
C)$46,200. 
D)$34,200.

Quizplus · Accepted Answer

The Answer of Use the following information for questions.
Fairfax Inc.began operations on January 1, 2016.Financial statements for 2016 and 2017 contained the following errors:  In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was NOT recorded until 2018.No corrections have been made for any of the errors.Ignore income tax considerations.
-The total effect of the errors on Fairfax's retained earnings at December 31, 2017 is that the balance is understated by
A)$82,200. 
B)$67,200. 
C)$46,200. 
D)$34,200.

Use the Following Information for Questions