In 2022, matapat A. CO reported net inxom of P18,000. The correct net income was 25,000. It was determined tharvthe ending inventory was overstated by P3,000 while the purchases was understated by P1,000. The only other error was with the beginning inventort which would be a. 11,000 over b.5,000 over c. 9,000 under d.3,0000 under
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In 2022, matapat A. CO reported net inxom of P18,000. The correct net income was 25,000. It was determined tharvthe ending inventory was overstated by P3,000 while the purchases was understated by P1,000. The only other error was with the beginning inventort which would be
a. 11,000 over
b.5,000 over
c. 9,000 under
d.3,0000 under
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Solved in 2 steps
- Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: Equity
- Assuming a companys year-end inventory were understated by $16,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: EquityIf a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2If Barcelona Companys ending inventory was actually $122,000, but the cost of consigned goods, with a cost value of $20,000 were accidentally included with the company assets, when making the year-end inventory adjustment, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
- In 2020, MAKISIG Company which uses the periodic system of recording inventory, reported a net income of P200,000. The correct net income was P250,000. lt was determined that the beginning and ending inventory were overstated by P20,000 and P15,000 respectively. The remaining error was due to purchases which was 15,000 A. overstated 15,000 B. 45,000 C. understated 45,000 D. overstated understated O A OB C. ODThe draft accounts of Kale & Co. for the year ended 31st Mar 2022 include the following: Revenue $8,000 Gross profit $2,000. It was subsequently discovered that revenue had been understated by $1,000 and closing inventory overstated by $500.After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?The draft accounts of Collister Co. for the year ended 31st Dec 2020 include the following:Revenue $80,000Gross profit $20,000It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000.After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?
- (S) porins) An audit of Antwren revealed four errors that were made but never corrected. In 2021, ending inventory was overstated by $201, 000 and depreciation was overstated by $44,000. In 2022, nding inventory was understated by $111, 000 and wages expens as understated by $86, 000. What effect did these errors have 0 htwren's 2022 net income? (RE&CF 6) understated by $226, 000 overstated by $132, 000 pverstated by $157,000 inderstated by $25,000Indigo Corporation reports net income of $91,780 in 2022. However, ending inventory was understated by $7,010. What is the correct net income for 2022? The correct net income $enter the correct net income in dollars What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2022?Total assets in the balance sheet will be select an option overstatedunderstated by the amount that ending inventory is select an option understatedoverstated, $enter a dollar amountAssuming a company’s year-end inventory were overstated by $5,000, indicate the effect(overstated/understated/no effect) of the error on the following balance sheet and income statement accounts.A. Income Statement: Cost of Goods SoldB. Income Statement: Net IncomeC. Balance Sheet: AssetsD. Balance Sheet: LiabilitiesE. Balance Sheet: Equity