Griffin Corporation prepared the following two Income statements (simplified for illustrative purposes): First Quarter Second Quarter...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Griffin Corporation prepared the following two Income statements (simplified for illustrative purposes): First Quarter Second Quarter Sales revenue Cost of goods sold Beginning inventory $ 12,800 $18,300 $ 4,200 $ 3,700 Purchases 2,800 12,200 ok Goods available for sale 7,000 15,900 Ending inventory 3,700 9,000 Cost of goods sold 3,300 6,900 9,500 11,400 ht 4,800 5,300 $ 4,700 $ 6,100 Gross profit Expenses Pretax income During the third quarter, it was discovered that the ending Inventory for the first quarter should have been $4,280. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected Income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and Incorrect amounts on the income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What effect did this error have on the combined pretax income of the two quarters? Effect on combined pretax income <Required 1 Required 2 > Griffin Corporation prepared the following two Income statements (simplified for illustrative purposes): First Quarter Second Quarter Sales revenue Cost of goods sold Beginning inventory $ 12,800 $18,300 $ 4,200 $ 3,700 Purchases 2,800 12,200 ok Goods available for sale 7,000 15,900 Ending inventory 3,700 9,000 Cost of goods sold 3,300 6,900 9,500 11,400 ht 4,800 5,300 $ 4,700 $ 6,100 Gross profit Expenses Pretax income During the third quarter, it was discovered that the ending Inventory for the first quarter should have been $4,280. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected Income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and Incorrect amounts on the income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What effect did this error have on the combined pretax income of the two quarters? Effect on combined pretax income <Required 1 Required 2 >
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Effect on Combined Pretax Income The error in the ending inventory for the first quarter ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
Posted Date:
Students also viewed these accounting questions
-
I. Activity Costs Caused by Suppliers (testing failures and reordering as a result) Activity Testing components Reordering components II. Supplier Data Costs $1,200,000 300,000 Alpha Alpha La Paz La...
-
Griffin Corporation prepared the following two income statements (simplified for illustrative purposes): During the third quarter, it was discovered that the ending inventory for the first quarter...
-
The management of a New York area investment firm wants to find out about the investment needs of its existing customers, for which it has an extensively detailed list, as a function of their...
-
Briefly discuss the similarity in computing supplies expense and computing cost of goods sold under the periodic inventory system using the formula shown on page 250. 1 Beginning Inventory Cost of...
-
Two skydivers are holding on to each other while falling straight down at a common terminal speed of 51.10m/s. Suddenly, they push away from each other. Immediately after the separation, the first...
-
The curved rod has a radius r and is fixed to the wall at B. Determine the resultant internal loadings acting on the cross section at point A which is located at an angle from the horizontal. B P
-
Consider the following hypotheses: H0: = 1800 HA: 1800 The population is normally distributed with a population standard deviation of 440. Compute the value of the test statistic and the resulting...
-
What is the definition of abnormal psychology ? What diagnoses come to mind when defining abnormal psychology?
-
The December 31, 2024, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Required: 1. Prepare an income statement for the year ended December 31, 2024, and a classified...
-
Apollo Shoes Case Workbook from the Apollo Shoes Case: Complete operations testing of revenue internal controls, using the voucher packets provided. Identify internal controls related to the...
-
Horizontal standards apply: When a condition is not covered by a specific industry standard When a hazard is not considered to be serious Only in specific situations or industries If a vertical or...
-
A Proton X70 starts from rest and travels along Jalan Kuantan-Gambang with constant acceleration. The car manages to achieve velocity of 15 m/s within 200 m of distance. Determine the acceleration...
-
There are times when the best strategies are simply unplanned and happen. When these "emergent" strategies are born (often out of conflict) it is important to be flexible in order to be successful....
-
We have a loan with monthly payments, an annual interest rate of 6%, paying off the $70,000 loan completely in a 10 year period. Payments are scheduled at the end of the period. Using Excel's PMT...
-
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable...
-
As manager of the gift shop at the Metropolitan Zoo, you areresponsible for managing the weekly payroll. Your assistantdeveloped a partial worksheet, but you need to enter the formulasto calculate...
-
When a company has a contract involving multiple performance obligations, how must the company recognize revenue?
-
Refer to the financial statements of American Eagle Outfitters in Appendix B, Urban Outfitters in Appendix C, and the Industry Ratio Report in Appendix D at the end of this book. Required: 1. By what...
-
On January 1 of this year, Denver Corporation sold bonds with a face value of $300,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. At the...
-
Refer to E4-8. Dittman's Variety Store is completing the accounting process for the current year just ended, December 31. The transactions during the year have been journalized and posted. The...
-
Which ratio measures the ability of a company to collect its receivables? a. Current ratio b. Quick ratio c. Days sales in receivables d. Return on assets
-
Which ratio measures the ability of a company to pay its current debts? a. Current ratio b. Inventory turnover ratio c. Days sales in receivables d. Return on assets
-
To calculate the debt ratio, total liabilities should be divided by a. income from operations. b. total assets. c. interest expense. d. total stockholders equity.
Study smarter with the SolutionInn App