Eclipse Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its

Question:

Eclipse Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2012, Eclipse Motorcycle Shop incorrectly counted its inventory as $350,000 instead of the correct amount of $338,000.
a. State the effect of the error on the December 31, 2012, of Eclipse Motorcycle Shop.
b. State the effect of the error on the income statement of Eclipse Motorcycle Shop for the year ended December 31, 2012.
c. If uncorrected, what would be the effect of the error or the 2013 income statement?
d. If uncorrected, what would be the effect of the error on the December 31, 2013, Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...