8. Wimpy Company prepared income statements that reflected pretax income of $22,000 for 2023 and $25,000 for
Question:
8. Wimpy Company prepared income statements that reflected pretax income of $22,000 for 2023 and $25,000 for 2024. An audit has determined that there were two errors in the inventory amounts as follows
Inventory Amount
Reported Correct Amount
Ending inventory, 2023 $16,000 $17,000
Ending inventory, 2024 12,000 14,000
Required: Calculate the correct pretax income amount for each year is (show computations assuming the errors were not corrected):
2023 $_____ _____
2024 $____ _____
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow