KariDowns, an auditor with Wheeler CPAS, is performing a review of Waterway Company's inventory account. Waterway did not havea good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $747,000. However, the following information was not considered when determining that amount.(a1) Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negativesign preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.)1.2.3.4.5.6.Ending inventory-as reportedIncluded in the company's count were goods with a cost of $257,000 that the company isholding on consignment. The goods belong to Kroeger Corporation.The physical count did not include goods purchased by Waterway with a cost of$35,000 that were shipped FOB destination on December 28 and did not arrive atWaterway warehouse until January 3.Included in the inventory account was $10,000 of office supplies that were stored in thewarehouse and were to be used by the company's supervisors and managers during thecoming year.The company received an order on December 29 that was boxed and sitting on the loadingdock awaiting pick-up on December 31. The shipper picked up the goods on January 1 anddelivered them on January 6. The shipping terms were FOB shipping point. The goods had aselling price of $49,000 and a cost of $38,000. The goods were not included in the countbecause they were sitting on the dock.On December 29, Waterway shipped goods with a selling price of $78,000 and a cost of$51,000 to Macchia Sales Corporation FOB shipping point. The goods arrived on January 3.Macchia had only ordered goods with a selling price of $15,000 and a cost of $8,000.However, a sales manager at Waterway had authorized the shipment and said that ifMachia wanted to ship the goods back next week, it could.Included in the count was $34,000 of goods that were parts for a machine that the companyno longer made. Given the high-tech nature of Waterway's products, it was unlikely thatthese obsolete parts had any other use. However, management would prefer to keep themon the books at cost, "since that is what we paid for them, after all."Correct inventory$$

The correct inventory amount can be determined by adjusting the reported inventory balance for the…

ri Downs, an auditor with Wheeler CPAs, is performing a review of Waterway Company's inventory account. Waterway did good year, and top management is under pressure to boost reported income. According to its records, the inventory balance d was $747,000. However, the following information was not considered when determining that amount. 1) Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a r in preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) Ending inventory-as reported Included in the company's count were goods with a cost of $257,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. The physical count did not include goods purchased by Waterway with a cost of tA

ri Downs, an auditor with Wheeler CPAs, is performing a review of Waterway Company's inventory account. Waterway did good year, and top management is under pressure to boost reported income. According to its records, the inventory balance d was $747,000. However, the following information was not considered when determining that amount. 1) Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a r in preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) Ending inventory-as reported Included in the company's count were goods with a cost of $257,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. The physical count did not include goods purchased by Waterway with a cost of tA

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 33RQSC

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Similar questions

If 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?
If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
Kari Downs, an auditor with Wheeler CPAS, is performing a review of Sheridan Company's inventory account. Sheridan did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year- end was $731,000. However, the following information was not considered when determining that amount. (a1) Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) 1. 2. 3. 4. 5. 6. Ending inventory-as reported Included in the company's count were goods with a cost of $241,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. The physical count did not include goods purchased by Sheridan with a cost of $38,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3.…
Farley Bains, an auditor with Nolls CPAs, is performing ar ga review of Ryder Company's Inventory account. Ryder did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740,000. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with o negative sign preceding the number, e.g.-15,000, or parenthesis eg. (15,000). Enter 0 if there is no effect.) 1. Your answer is partially correct. 2 3 Ending inventory-as reported Included in the company's count were goods with a cost of $228,000 that the company is holding on consignment. The goods belong to Nader Corporation. The physical count did not include goods purchased by Ryder with a cost of $40,000 that were shipped FOB shipping point on December 28 and did not arrive at Ryder's warehouse until January…
Kari Downs, an auditor with Wheeler CPAS, is performing a review of Swifty Company's inventory account. Swifty did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $747,000. However, the following information was not considered when determining that amount. (a1) Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) 1. 2. 3. 4. 5. 6. Ending inventory-as reported Included in the company's count were goods with a cost of $244,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. The physical count did not include goods purchased by Swifty with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Swifty warehouse until January 3. Included in the…
Farley Bains, an auditor with Nolls CPAs, is performing a review of Wildhorse Company's Inventory account. Wildhorse did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year- end was $793,920. However, the following information was not considered when determining that amount. (a1) Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign e.g. -45 or parentheses e.g. (45).) Ending inventory-as reported 1. Included in the company's count were goods with a cost of $225,250 that the company is holding on consignment. The goods belong to Nader Corporation. 2. 3. 4. 5. The physical count did not include goods purchased by Wildhorse with a cost of $40,080 that were shipped FOB shipping point on December 28 and did not arrive at Wildhorse's warehouse until January 3. Included in the Inventory account was $18,120 of office supplies that were stored…
Kari Downs, an auditor with Wheeler CPAs, is performing a review of Waterway Company’s inventory account. Waterway did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $747,000. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount.
Farley Bains, an auditor with Nolls CPAs, is performing a review of Splish Brothers Inc.’s Inventory account. Splish Brothers did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $774,190. However, the following information was not considered when determining that amount.Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign or parenthesis e.g. -45 or parentheses e.g. (45).) Ending inventory-as reported $Enter a dollar amount 1. Included in the company’s count were goods with a cost of $216,010 that the company is holding on consignment. The goods belong to Nader Corporation. Enter a dollar amount 2. The physical count did not include goods purchased by Splish Brothers with a cost of $39,630 that were shipped FOB shipping point on December 28 and did not arrive at Splish…
Farley Bains, an auditor with Nolls CPAs, is performing a review of Waterway Company’s Inventory account. Waterway did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $695,600. However, the following information was not considered when determining that amount.Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign or parenthesis e.g. -45 or parentheses e.g. (45).) Ending inventory-as reported $Enter a dollar amount 1. Included in the company’s count were goods with a cost of $211,700 that the company is holding on consignment. The goods belong to Nader Corporation. Enter a dollar amount 2. The physical count did not include goods purchased by Waterway with a cost of $40,640 that were shipped FOB shipping point on December 28 and did not arrive at Waterway’s warehouse…
HOW DO I WORKOUT THIS PROBLEM? Kari Downs, an auditor with Wheeler CPAs, is performing a review of Waterway Company’s inventory account. Waterway did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $747,000. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount.
Farley Bains, an auditor with Nolls CPAs, is performing a review of Teal Mountain Inc.’s Inventory account. Teal Mountain Inc. did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $808,200. However, the following information was not considered when determining that amount. Ending inventory-as reported $enter a dollar amount 1. Included in the company’s count were goods with a cost of $224,170 that the company is holding on consignment. The goods belong to Nader Corporation. enter a dollar amount 2. The physical count did not include goods purchased by Teal Mountain Inc.with a cost of $38,530 that were shipped FOB shipping point on December 28 and did not arrive at Teal Mountain Inc.’s warehouse until January 3. enter a dollar amount 3. Included in the Inventory account was $18,300 of office supplies that were stored in the…
Farley Bains, an auditor with Nolls CPAS, is performing a review of Teal Mountain Inc.'s Inventory account. Teal Mountain Inc. did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $808,200. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign or parenthesis e.g. -45 or parentheses e.g. (45).) 808,200 Ending inventory-as reported $4 1. Included in the company's count were goods with a cost of $224,170 that the company is holding on consignment. The goods belong to Nader Corporation. (224,170) 2. The physical count did not include goods purchased by Teal Mountain Inc. with a cost of $38,530 that were shipped FOB shipping point on December 28 and did not arrive at Teal Mountain Inc.'s warehouse until January 3. 38,530 3. Included in the…