Jacob's Upholstery, Inc., reported the following comparative income statements for the years ended September 30, 2016 and

Question:

Jacob's Upholstery, Inc., reported the following comparative income statements for the years ended September 30, 2016 and 2015.

Jacob's Upholstery, Ino. Comparative Income Statements For the Years Ended September 30, 2016 and 2015 2016 $294,000 201

During 2016, Jacob’s Upholstery, Inc., discovered that the 2015 ending inventory, as previously reported, was understated by $1,500.

Requirements
1. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements.
2. What was the effect of the error on net income for the two years combined? Explain your answer.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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