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 $____ _____
Expert Answer:
To calculate the correct pretax income amount for 2023 and 2024 given the provided information about errors in inventory amounts we need to understand ... View the full answer
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
