Healthy Bite Mart reported the following comparative income statement for the years ended November 30, 2010 and

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Healthy Bite Mart reported the following comparative income statement for the years ended November 30, 2010 and 2009.image text in transcribed

During 2010, Healthy Bite Mart discovered that the 2009 ending inventory, as previously reported, was understated by $2,500.
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 your answer.

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Financial Accounting

ISBN: 9780136060482

1st Edition

Authors: Jeffrey Waybright, Robert Kemp

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