please solve this accounting question; DuPlessis Corporation incorrectly recorde

Question

please solve this accounting question;

DuPlessis Corporation incorrectly recorded $26,400 of goods held on consignment for another company as a purchase on account during the year ended December 31, 2018. The physical inventory count, which included the consigned goods, agreed with the perpetual inventory accounting records at year end. What effect, if any, will this error have on total assets, liabilities, and shareholders' equity at December 31, 2018 assuming the error is not detected before year end? Total assets Not be affected Total liabilities Shareholders equity Understated

Explanation / Answer

Total assets Overstated 25000 Total liabilities Overstated 25000 Shareholders equity Not be affected 0

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