If merchandise inventory is understated at the end of 2012, and the error is not discovered, how will net income be affected in 2013?
Answer to relevant QuestionsThe following account balances were taken from the 2013 post-closing trial balance of the Bowler Corporation: cash, $5,000; accounts receivable, $10,000; inventory, $16,000; machinery and equipment, $100,000; accumulated ...In 2013, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2012, B & B’s inventories were $32 million (FIFO). B & B’s records indicated ...In 2013, the internal auditors of Development Technologies, Inc., discovered that (a) 2012 accrued wages of $2 million were not recognized until they were paid in 2013 and (b) A $3 million purchase of merchandise in 2013 was ...On December 12, 2013, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account.Required:1. Prepare the journal entry to correct the error assuming it is ...In its annual report for the year ended January 31, 2011, Virco Manufacturing Corporation , a producer of school desks and other furniture, provided the following information regarding a change in inventory method (in ...
Post your question