Intermediate Accounting Chapter 20 Question: please look at attachment.

Question 1 Jeremy Company's auditor discovered the following errors during 2015 related to inventory. Assume the books are still open. Jeremy Company double counted $8,000 of inventory in 2013 resulting in an overstatement of inventory. A similar type error was made in 2014 and ending inventory was overstated by $12,000. A periodic inventory system is used by Jeremy. You may ignore taxes. (A) Determine the effect of the inventory errors on the following accounts. Be sure to identify whether the error overstated or understated the reported balances in the respective years. 2013 2014 Cost of Goods Sold on the Income Statement $_____________ $_____________ Ending Inventory on the Balance Sheet $_____________ $_____________ Net Income on the Income Statement $_____________ $_____________ Retained Earnings on the Balance Sheet $_____________ $_____________ (B) Prepare any journal entries Jeremy should record in 2015 to correct the inventory errors. Explain your reasoning. Question 4 Harrigan Corporation changed from LIFO to the FIFO inventory costing method on January 1, 2014. The company was founded in 2012. Inventory values at the end of each year under both methods are as follows: 2012 2013 2014 FIFO $310,000 $330,000 $316,000 LIFO $302,000 $321,000 $303,000 Prepare the entry that should be made in 2014 as a result of the change in inventory method from LIFO to FIFO. You may ignore taxes