Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of

Question:

Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400.
a. State the effects of the error on the December 31, 20Y8, of Madison River Supply.
b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8.
c. If uncorrected, what would be the effects of the error on the 20Y9 income statement?
d. If uncorrected, what would be the effects of the error on the December 31, 20Y9, Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...