Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600.a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply.b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2.c. If uncorrected, what would be the effect of the error on the 20Y3 income statement?d. If uncorrected, what would be the effect of the error on the December 31, 20Y3, balance sheet?

Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600.a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply.b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2.c. If uncorrected, what would be the effect of the error on the 20Y3 income statement?d. If uncorrected, what would be the effect of the error on the December 31, 20Y3, balance sheet?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 21GI: Indicate the effect of each of the following errors on the following balance sheet and income...

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Hot Bread Bakery reported net sales revenue of $44,000 and cost of goods sold of $33,000. Compute Hot Bread's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $8,000. b. Ending merchandise inventory is understated by $8,000. Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: As Reported- (a) Overstated by (b) Understated by Incorrect $8,000 $8,000 Net sales revenue 2$ 44,000 $ 44,000 $ 44,000 Cost of goods sold 33,000 Gross profit Help Me Solve This e Text Pages Get More Help - Clear All pe here to search DELL DII F4 prt sc F10 home F %23 %24 % & 4 6. 7 R Y. D H. K C V V. * 00 E.
Hudson River Bakery reported net sales revenue of $56,000 and cost of goods sold of $13,000. Compute Hudson River's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $3,000 b. Ending merchandise inventory is understated by $3,000. Net sales revenue Cost of goods sold Gross profit As Reported Incorrect Cost of Goods Sold and Gross Profit Corrected for the Error Ending Merchandise Inventory: (a) Overstated by (b) Understated by $3,000 $3,000 56,000 $ 13,000 56,000 $ 56,000
At the beginning of the year Candle Co. has an inventory balance of $32,000. The company has net income for the year of $56,000. Later, the accountant discovers an error that caused the beginning invenotory to be understated by $6,000. a. Assuming no other changes, what is the correct net income for the year? b. If the error was discovered after year-end, what was the effect of the error on the balance sheet? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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