After finalizing the draft accounts for the year ended 30 June 25Y0 and its draft balance sheet as at 30 June 25Y0, PQR Inc discovered an error in the stock lists used to calculate the stock value as at 30 June 25Y0 The entry is as follows Stock item Number Cost per unit Total cost W789 110 3 90 429 Required (a) Explain the discrepancy in this entry (b) Assess the effects of the error on (i) the stock valuation as at 30 June 25Y0 (ii) the cost of goods sold for the year ended 30 June 25Y0 (iii) the net income for the year ended 30 June 25Y0 (iv) the total for Current Assets as at 30 June 25Y0

The Answer is in the image, click to view ...

Question: After finalizing the draft accounts for the year ended 30 June 25Y0 and its draft balance sheet as at 30 June 25Y0, PQR Inc discovered

After finalizing the draft accounts for the year ended 30 June 25Y0 and its draft balance sheet as at 30 June 25Y0, PQR Inc discovered an error in the stock lists used to calculate the stock value as at 30 June 25Y0. The entry is as follows:

Stock item	Number	Cost per unit	Total cost
W789	110	£3.90	£429

Required: (a) Explain the discrepancy in this entry. (b) Assess the effects of the error on: (i) the stock valuation as at 30 June 25Y0. (ii) the cost of goods sold for the year ended 30 June 25Y0. (iii) the net income for the year ended 30 June 25Y0. (iv) the total for Current Assets as at 30 June 25Y0.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Banking Questions!

After finalizing the draft accounts for the year ended 30 June 24Y1 and its draft balance sheet as at 30 June 24Y1, QRS Inc discovered an error in the stock lists used to calculate the stock value as...

In the process of finalizing its draft accounts for the year ended 30 April 20Y7 and its draft balance sheet as at 30 April 20Y7, MNO Ltd identified an error in the stock lists used to compute stock...

In the process of finalizing its draft accounts for the year ended 30 April 21Y7 and its draft balance sheet as at 30 April 21Y7, STU Enterprises identified an error in the stock lists used to...

In the process of finalizing its draft accounts for the year ended 30 April 22Y7 and its draft balance sheet as at 30 April 22Y7, YZA Enterprises identified an error in the stock lists used to...

In the process of finalizing its draft accounts for the year ended 30 April 24Y5 and its draft balance sheet as at 30 April 24Y5, ABC Ltd identified an error in the stock lists used to compute stock...

In the process of finalizing its draft accounts for the year ended 30 April 23Y6 and its draft balance sheet as at 30 April 23Y6, MNO Ltd identified an error in the stock lists used to compute stock...

After finalizing the draft accounts for the year ended 30 June 23Y2 and its draft balance sheet as at 30 June 23Y2, ABC Inc discovered an error in the stock lists used to calculate the stock value as...

After preparing its draft final accounts for the year ended 30 June 20Y2 and its draft balance sheet as at 30 June 20Y2, XYZ Inc discovered that the stock lists used to compute the value of stock as...

After preparing its draft final accounts for the year ended 30 June 21Y3 and its draft balance sheet as at 30 June 21Y3, GHI Ltd identified an error in the stock lists used to compute the value of...

After preparing its draft final accounts for the year ended 30 June 22Y3 and its draft balance sheet as at 30 June 22Y3, MNO Ltd identified an error in the stock lists used to compute the value of...

Two steel wires (of the same length and different radii) are connected together, end to end, and tied to a wall. An applied force stretches the combination by 1.0 mm. How far does the midpoint move?...

Consider the nuclear reaction 2814 Si + 2814 Mg + X where X is a nuclide. (a) What is Z and A for the nuclide X? (b) Ignoring the effects of recoil, what minimum energy must the photon have for this...

An insurance company defines the difference in pay between level assembler, as well as the difference between an entry - lev vice president of the human resource department. What is beir job structure

Starbucks reports net income for 2015 of $2,880.4 million. Its stockholders' equity is $6,038 million and $6,584 million for 2014 and 2015, respectively. Starbucks repurchased over $1.4 billion of...

Two cities, Alphaville and Betaville are facing an outbreak of COVID-19. The local authorities in these cities have implemented the government's recommendation for containment, such as stay- at-home...

Peace Corporation acquired 100 percent of Soft Inc. in a nontaxable transaction on December 31, 20X1. The following balance sheet information is available immediately following the transaction: Peace...

From random sample, here is mean and SD of NFL total salary in 2009. Sample size is 201. 1) Is the sample size adequate to find a total salary? 2) Is the sampling method appropriate to find total...

An orchard has a acre of specialty fruit trees and is preparing for summer harvest. Historically, this acre has yielded and average of 1,800 lbs of fruit with a standard deviation of 800 lbs. A...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Time in surgery: Records at a hospital show that a certain surgical procedure takes an average of 162.8 minutes with a standard deviation of 4.9 minutes. If the data are approximately bell-shaped,...

Percentiles are values that divide a data set into hundredths. The values that divide a data set into tenths are called deciles, denoted D1 , D2 , ... , D9. Describe the relationship between...

Paying rent: The monthly rents for apartments in a certain town have a mean of $800 with a standard deviation of $150. What can you determine about these data by using Chebyshevs Inequality with K =...