For each of the following inventory errors occurring in 2024, determine the effect of the error on
Question:
For each of the following inventory errors occurring in 2024, determine the effect of the error on 2024’s cost of goods sold, net income, and retained earnings. Assume that the error is not discovered until 2025 and that a periodic inventory system is used. Ignore income taxes.
Transcribed Image Text:
U = Understated O Overstated 1. Overstatement of ending inventory. 2. Overstatement of purchases. 3. Understatement of beginning inventory. 4. Freight-in charges are understated. 5. Understatement of ending inventory. 6. Understatement of purchases. 7. Overstatement of beginning inventory. 8. Understatement of purchases and understatement of ending inventory, by the same amount. NE = No effect Cost of Goods Sold U Net Income O Retained Earnings O
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
U understated O overstated NE no effect 1 Overstatement of ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
For each of the following inventory errors occurring in 2018, determine the effect of the error on 2018's cost of goods sold, net income, and retained earnings. Assume that the error is not...
-
In early 2010, while reviewing Huffman Inc.s 2009 financial records, the accountant discovered several errors. For each of the following errors, indicate the effect on net income (i.e.,...
-
John Hasty opened his bakery on March 1, 1999. The following transactions took place in early March: 1. Deposited $10,000 into a checking account in the name of the Hasty Bakery. 2. Leased a small...
-
Distinguish among data definition commands, data manipulation commands, and data control commands.
-
A travel agency will plan a group tour for groups of size 25 or larger. If the group contains exactly 25 people, the cost is $300 per person. If each person's cost is reduced by $10 for each...
-
Determine the horizontal displacement of joint \(D . A E\) is constant. P D A C L 0.6 L 0.8 L B
-
H & L Beef Products, Inc., processes cattle. It can sell the meat as sides of beef or process it further into final cuts (steaks, roasts, and hamburger). As part of the company's strategic plan,...
-
Autonomous cars are being developed and tested with a goal of being introduced to our roadways in upcoming years. Many people welcome this new technology which is expected to increase safety on the...
-
At the beginning of the current year, Able and Baker formed the AB Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50%...
-
Indicate with the appropriate letter the nature of each situation described below: Type of Change PR PP E EP R N Change in principle reported retrospectively Change in principle reported...
-
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Wright Company. Additional information from Wrights accounting records is provided also....
-
Chrysler ran an ad featuring Eminem during the Super Bowl in February 2011, and the ad was rated as one of the best for the game. In May 2011, Audi ran an ad at German auto show that had the "feel"...
-
The behavior of a use case can be described by (a) a specification that is some kind of Behavior such as interactions, activities, and state machines (b) pre-conditions and post-conditions along with...
-
Write down five types of transaction where you might expect to see an accrual of expense at the year-end. Against each transaction type write down the method you would use to estimate the amount of...
-
A class diagram can be used to model following things except (a) depicting the implementation detail of domain entities (b) depicting the interaction between domain entities (c) depicting state and...
-
David discusses the risks relating to reported current liabilities. He does not include the risk that a liability is omitted altogether. What would be the effect on reported profit of omitting a...
-
The UML graphical representation of a Generalization is a hollow ________ shape on the supertype end of the line (or tree of lines) that connects it to one or more subtypes. (a) Polygon (b) Triangle...
-
HP has been engaged in environmental matters for some years, how might this help them to be more effective at it?
-
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $340,200. Stinson's book value on that date consisted of common stock of $100,000 and...
-
Explain the similarities in and differences among depreciation, depletion, and amortization.
-
Explain the similarities in and differences among depreciation, depletion, and amortization.
-
Explain the similarities in and differences among depreciation, depletion, and amortization.
-
Compare and contrast digital evidence and non-digital evidence. Provide three examples of how they are similar and three examples of how they are different. You must use the provided course materials...
-
In May of 2015, Mr. Miradi made an oral agreement with Mr. Miondoko for the sale of a piece of land situate in Nyeri County Land title No. Gakawa/Kahurura Block III/Mwichwiri/823 for a price of KShs....
-
and QB- Two identical point charges (+2.27 10-9 C) are fixed in place, separated by 0.460 m (see the figure). Find (a) the electric field and (b) the electric potential at the midpoint of the line...
Study smarter with the SolutionInn App