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31-07-2020
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The following errors were discovered by the Gerding Company: Failure to record Unearned Revenue in 2026: $6 Failure to record Depreciation in 2025: $8 Indicate the error in 2026 Net Income:

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02-08-2020

Answer:

Overstated $2

Explanation:

Calculation to Indicate the error in 2026 Net Income

2026 Failure to record Unearned Revenue $6

Less 2025 Failure to record Depreciation ($8)

2026 Net income $2

Therefore the error in 2026 Net Income will be overstated amount of $2

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