Question

Sinclair Auto Parts, Inc., reported the following comparative income statement for the years ended September 30, 2012 and 2011.


During 2012, Sinclair Auto Parts, Inc., discovered that the 2011 ending inventory, as previously reported, was understated by $4,500.

Requirements
1. Prepare the corrected comparative income statement for the two-year period, complete with a heading for the statement.
2. What was the effect of the error on net income for the two years combined? Explain youranswer.


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  • CreatedApril 29, 2014
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