For each of the following inventory errors occurring in 2013, determine the effect of the error on
Question:
For each of the following inventory errors occurring in 2013, determine the effect of the error on 2013’s cost of goods sold, net income, and retained earnings. Assume that the error is not discovered until 2014 and that a periodic inventory system is used. Ignore incometaxes.
Transcribed Image Text:
U-understated Ooverstated NE no effect Cost of Goods Sold Net Income Retained Earnings 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 plus understatement of ending inventory by the same amount
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (16 reviews)
U understated O overstated NE no effect 1 Overstatement 2 Overstatement of ending inventory ...View the full answer
Answered By
Sheikh Muhammad Ibrahim
During the course of my study, I have worked as a private tutor. I have taught Maths and Physics to O'Level and A'Level students, as well as I have also taught basic engineering courses to my juniors in the university. Engineering intrigues me alot because it a world full of ideas. I have passionately taught students and this made me learn alot. Teaching algebra and basic calculus, from the very basics of it made me very patient. Therefore, I know many tricks to make your work easier for you. I believe that every student has a potential to work himself. I am just here to polish your skills. I am a bright student in my university. My juniors are always happy from me because I help in their assignments and they are never late.
4.90+
14+ Reviews
24+ Question Solved
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Question Posted:
Students also viewed these Accounting 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...
-
Determine the error for each of the following forecasts. Compute MAD andMSE. Period Value Forecast Error 202 191 173 169 175 182 196 204 219 227 202 192 181 174 172 174 179 189 198 211 10
-
For each of the following errors identify an audit procedure the auditor could have used to detect it. a. The allowance for doubtful accounts estimated by management is too small. b. Cash in payment...
-
Which subject does Corporate social responsibility belong to?
-
Citate the following revenue procedures. What is the status of each? If another revenue procedure has made it obsolete, continue citation until you find the one most current revenue procedure. a....
-
A recent survey found that, despite airline requests, about 40% of passengers dont fully turn off their cell phones during takeoff and landing (although they may put them in airplane mode). The two...
-
If P = 20 kN, determine the average shear stress developed in the pins at A and C. All pins are subjected to double shear as shown, and each has a diameter of 18 mm. A-2 m- m P 30 -2m- B
-
Following is Hartzbergs latest income statement. The company produced and sold 100,000 units during the year. Required Restate the income statement in contribution margin format, as if Hartzburg had...
-
The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. If the run time for producing a batch of saddles is 4 days, the rate of production...
-
Calculate (72530 - 13250) using tens complement arithmetic. Assume rules similar to those for twos complement arithmetic.
-
During 2013, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2011 understated by ........$120,000 2012...
-
In 2013, the internal auditors of Development Technologies, Inc. discovered that a $4 million purchase of merchandise in 2013 was recorded in 2012 instead. The physical inventory count at the end of...
-
Explain the difference between a simple index and an aggregate index.
-
Find the rms speed of an oxygen molecule at \(0{ }^{\circ} \mathrm{C}\). The mass of an oxygen atom is \(2.657 \times 10^{-26} \mathrm{~kg}\) ?
-
At some point in a flow system of oxygen \(M_{1}=3.0, T_{t 1}=800^{\circ} \mathrm{R}\), and \(p_{1}=35\) psia. At a section farther along in the duct, the Mach number has been reduced to...
-
What is the average kinetic energy of a system made up of \(1.00 \mathrm{~mol}\) of krypton atoms having an average speed of \(125 \mathrm{~m} / \mathrm{s}\) ? The mass of a krypton atom is \(1.39...
-
In a flow of air \(ho_{1}=1.35 \times 10^{5} \mathrm{~N} / \mathrm{m}^{2}, T_{1}=500 \mathrm{~K}\), and \(V_{1}=540 \mathrm{~m} / \mathrm{s}\). Heat transfer occurs in a constant-area duct until the...
-
Air flows at the rate of \(39.0 \mathrm{lbm} / \mathrm{sec}\) with a Mach number of 0.30 , a pressure of 50 psia, and a temperature of \(650^{\circ} \mathrm{R}\). The duct has a...
-
In Chapter 7 of the 2015 Economic Report of the President (http://www.gpo.gov/fdsys/pkg/ERP-2015/pdf/ERP-2015-chapter7.pdf), the authors of the report present evidence that free-trade agreements have...
-
The water in tank A is at 270 F with quality of 10% and mass 1 lbm. It is connected to a piston/cylinder holding constant pressure of 40 psia initially with 1 lbm water at 700 F. The valve is opened,...
-
If price were increased from $40 to $42 and quantity demanded fell from 50 to 45, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue...
-
The following questions dealing with the income statement are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations. The CMA designation sponsored by...
-
Selected information about income statement accounts for the Reed Company are presented below (the company's fiscal year ends on December 31): On July 1, 2011, the company adopted a plan to...
-
The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2011 and 2010: On October 15, 2011, Jackson entered into a tentative...
-
What extent does emotional intelligence among leaders and employees contribute to effective teamwork and conflict resolution, and what methods can be employed to enhance emotional intelligence within...
-
Determine the exponential function y = c(b) that goes through the points (-2, 16) and (1,54). Algebraic work must be shown for full credit.
-
Solve 6. 8. 8 So log x (1 + x)(4+ x) [log x] 2 dx 0 1 + x So dx
Study smarter with the SolutionInn App