Homework Answers
| when ending iventory is understated then cost of goods sold is overstated | ||||||||
| thus net income will be understated | ||||||||
| hence the statement is | ||||||||
| FALSE | ||||||||
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question #46 The Zabel Company uses the periodic inventory system. Kelly Zabel, the CEO, believes that...
explain 40. ABC Grocery Store uses the periodic inventory system. During 2017, the company properly recorded...
explain
40. ABC Grocery Store uses the periodic inventory system. During 2017, the company properly recorded all purchases and had an accurate count of ending inventory. The ending inventory for 2016, however, had been understated. What effect, if any, would this have on Cost of goods sold and Net income in 2017? a. b. c. d. Cost of goods sold understated; Net income overstated Cost of goods sold understated; Net income understated Cost of goods sold overstated; Net income understated...
Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,400,...
Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $31,400, and its ending inventory on December 31 was understated by $16,300. In addition, a purchase of merchandise costing $20,500 was incorrectly recorded as a $2,050 purchase. None of these errors were discovered until the next year. As a result, Poppy's cost of goods sold for this year was: Multiple Choice Understated by $49,850. Overstated by $3,350. Understated by $33,550. Overstated by $33,550.
as soon as possible thx 0.058 Dupont Ltd uses a periodic inventory system has the following...
as soon as possible
thx
0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if 9,000 units are on hand as at the end of July the cost of the ending inventory under First-In-First-Out (FIFO) method is Select one: a $ 100,000 b. $108,000 $113,000 d. $117.000 0.062 Montreal Furniture uses a periodic inventory system. During an accounting year many...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
A company uses the periodic inventory method and the beginning inventory is understated by $4,000 because...
A company uses the periodic inventory method and the beginning inventory is understated by $4,000 because the ending inventory in the previous period was understated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are O assets are overstated and stockholders' equity is overstated. None of these assets are understated and stockholders' equity is understated. assets are overstated and stockholders' equity is correct. assets are correct and...
Lotus Blue Pte Ltd uses a periodic inventory system. In its physical stock count taken at...
Lotus Blue Pte Ltd uses a periodic inventory system. In its
physical stock count taken at 31 December 2012, Lotus Blue’s
employees failed to count the merchandise in the store’s window
display. The cost of these merchandise amounted to $2,300. Lotus
Blue reported a pretax income of $267,000 and $355,000 for the
financial year ended 31 December 2012 and 31 December 2013
respectively.
1. Lotus Blue Ltd Compute Lotus Blue's correct pretax income for the year ended 31 December 2012...
Chiang Ltd. is a manufacturing company based in Fredericton, New Brunswick. During the current year, Chiang’s staff made a number of errors related to inventory, which follow.
Chiang Ltd. is a manufacturing company based in Fredericton, New Brunswick. During the current year, Chiang’s staff made a number of errors related to inventory, which follow.1.Raw materials that were in transit at year end were excluded from inventory. The goods had been purchased FOB shipping point. The transaction has not been recorded.2.Some goods were damaged after a leak in the warehouse, but were not written down to their NRV (which was lower than their cost).3.Goods held on consignment for...
Cullumber's Hardware uses the periodic inventory system and reported cost of goods sold as follows. 2018...
Cullumber's Hardware uses the periodic inventory system and reported cost of goods sold as follows. 2018 2019 Beginning inventory $ 20,000 150,000 $30,000 175,000 Cost of goods purchased Cost of goods available for sale 170,000 205,000 Ending inventory 30,000 35,000 Cost of goods sold $140,000 $170,000 Cullumber's made two errors: (1) 2018 ending inventory was overstated $3,100, and (2) 2019 ending inventory was understated $6,100. Compute the correct cost of goods sold for each year, 2018 2019 Cost of goods...
TB 06-108 Martock Company uses the periodic inventory ... Martock Company uses the periodic inventory system....
TB 06-108 Martock Company uses the periodic inventory ... Martock Company uses the periodic inventory system. The following information is available for the period ending December 31:(1) Sales: $30,000 (2) Beginning inventory: $17,500 (3) Ending inventory: $8,000 (4) Purchases: $10,000The cost of goods sold for the period is Multiple Choice $25,100 $19,500 $26,000 $24,500 $21,500
15) Classic Car Parts, Inc. uses a periodic inventory system. From the following details, calculate net...
15) Classic Car Parts, Inc. uses a periodic inventory system. From the following details, calculate net purchases. Beginning merchandise inventory Ending merchandise inventory Purchases Purchase Discounts Purchase Returns and Allowances Freight In $2,000 2,300 21,000 1,000 1,300 4,400 A) $18,700 B) $20,000 C) $20,700 D) $23,300 UE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 16) When preparing financial statements under the periodic inventory system, a calculation of cost of goods sold must be...
explain
40. ABC Grocery Store uses the periodic inventory system. During 2017, the company properly recorded all purchases and had an accurate count of ending inventory. The ending inventory for 2016, however, had been understated. What effect, if any, would this have on Cost of goods sold and Net income in 2017? a. b. c. d. Cost of goods sold understated; Net income overstated Cost of goods sold understated; Net income understated Cost of goods sold overstated; Net income understated...
as soon as possible
thx
0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if 9,000 units are on hand as at the end of July the cost of the ending inventory under First-In-First-Out (FIFO) method is Select one: a $ 100,000 b. $108,000 $113,000 d. $117.000 0.062 Montreal Furniture uses a periodic inventory system. During an accounting year many...
Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30 2020 Understated $40 2021 Indicate the error in the following items: Select one: a. 2022 Net Income 12/31/21 Retained Earnings Understated $10 No error b. 2022 Net Income 12/31/21 Retained Earnings Overstated $10 No error C. 2022 Net Income 12/31/21 Retained Earnings Understated $40 Understated $40 d. 2022 Net Income 12/31/21 Retained Earnings Overstated $40 Understated $40 e. 2022 Net Income 12/31/21 Retained Earnings...
A company uses the periodic inventory method and the beginning inventory is understated by $4,000 because the ending inventory in the previous period was understated by $4,000; the ending inventory for this period is correct. The amounts reflected in the current end of the period balance sheet are O assets are overstated and stockholders' equity is overstated. None of these assets are understated and stockholders' equity is understated. assets are overstated and stockholders' equity is correct. assets are correct and...
Lotus Blue Pte Ltd uses a periodic inventory system. In its
physical stock count taken at 31 December 2012, Lotus Blue’s
employees failed to count the merchandise in the store’s window
display. The cost of these merchandise amounted to $2,300. Lotus
Blue reported a pretax income of $267,000 and $355,000 for the
financial year ended 31 December 2012 and 31 December 2013
respectively.
1. Lotus Blue Ltd Compute Lotus Blue's correct pretax income for the year ended 31 December 2012...
Cullumber's Hardware uses the periodic inventory system and reported cost of goods sold as follows. 2018 2019 Beginning inventory $ 20,000 150,000 $30,000 175,000 Cost of goods purchased Cost of goods available for sale 170,000 205,000 Ending inventory 30,000 35,000 Cost of goods sold $140,000 $170,000 Cullumber's made two errors: (1) 2018 ending inventory was overstated $3,100, and (2) 2019 ending inventory was understated $6,100. Compute the correct cost of goods sold for each year, 2018 2019 Cost of goods...
15) Classic Car Parts, Inc. uses a periodic inventory system. From the following details, calculate net purchases. Beginning merchandise inventory Ending merchandise inventory Purchases Purchase Discounts Purchase Returns and Allowances Freight In $2,000 2,300 21,000 1,000 1,300 4,400 A) $18,700 B) $20,000 C) $20,700 D) $23,300 UE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 16) When preparing financial statements under the periodic inventory system, a calculation of cost of goods sold must be...
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