Question

Yellowstone River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2014, Yellowstone River Supply incorrectly counted its inventory as $324,650 instead of the correct amount of $338,500.
a. State the effect of the error on the December 31, 2014, balance sheet of Yellowstone River Supply.
b. State the effect of the error on the income statement of Yellowstone River Supply for the year ended December 31, 2014.
c. If uncorrected, what would be the effect of the error on the 2015 income statement?
d. If uncorrected, what would be the effect of the error on the December 31, 2015, balance sheet?



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  • CreatedFebruary 28, 2014
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