Homework Answers
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Option C is the answer Net income will be understated |
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If the ending inventory is overstated, net income will be understated. If the ending inventory is understated, net income will be overstated. Comment if you face any issues |
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If the ending inventory on December 31, 2011, is overstated by $6,000, which of the following...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable value 23,600 Cost of goods sold (before consideration of the lower-of-cost-and-net-realizable-value rule) 37,000 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net realizable value rule? A) Cost of goods sold will be $37,400. B) Cost of goods sold will be $36,400. C) Cost of goods sold will be $37,000. D) Ending inventory will be $24,000. 78) Inventory at...
The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is...
The ending inventory of Sandie’s Candies is overstated by $75,000 at December 31, 20x8. What is the effect on 20x8’s net income, assuming that no other inventory errors have occurred during 20x8? Group of answer choices a. $150,000 overstated b. $75,000 understated c. no effect d. $75,000 overstated
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...
Cage Trading Inc. counted $2,000 of inventory twice during its December 31, 2016 physical inventory count....
Cage Trading Inc. counted $2,000 of inventory twice during its December 31, 2016 physical inventory count. Its December 31, 2017 inventory amount is correct. As a result of this error, 2016 ending inventory is overstated by $2,000. 2016 income is understated by $2,000. 2017 income is overstated by $2,000. 2017 cost of goods sold is understated by $2,000. Question 4 2 pts Kemp Clothing has cost of goods sold of $14,000 with beginning and ending inventories of $4.000 and $2,000....
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by...
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by $400 • December 31, 20X1 inventory understated by $100 (1) By what amount was the hospital's 20X2 excess of revenues over expenses overstated or understated due to these errors? (2) By what amount were the hospital's net assets (fund balance) overstated or understated at December 31, 20X2 due to these errors?
Understating the ending inventory balance has the following impact on the current year's income statement: U...
Understating the ending inventory balance has the following impact on the current year's income statement: U A Cost of goods sold is overstated and net income is understated. B) Cost of goods sold is understated and net income is understated. Cost of goods sold is overstated and net income is overstated. D Cost of goods sold is understated and net income is overstated. OE) Cost of goods sold is overstated and net income is correct.
If the beginning inventory is overstated: 1.the current ratio is overstated. 2.cost of goods sold is...
If the beginning inventory is overstated: 1.the current ratio is overstated. 2.cost of goods sold is understated 3.retained earnings is understated. 4.working capital is understated. Wavy Inc. is a calendar-year corporation. Its financial statements for the years 2017 and 2016 contained errors as follows: 2017 2016 Ending Inventory $9,000 overstated $18,000 overstated Depreciation Expense $6,000 understated $13,500 overstated Assume that the proper correcting entries were made at December 31, 2016. By how much will 2017 income before taxes be overstated...
Cobb Company's accounting records show the following ending on December 31, 2013 Purchase Discounts Freight-in Purc...
Cobb Company's accounting records show the following ending on December 31, 2013 Purchase Discounts Freight-in Purchases Beginning Inventory Ending Inventory Purchase Returns $ 5,600 7.800 202,000 23.500 28,800 7.400 Using the periodic system, the cost of goods purchased is a. $189,000 b. $191,500. c. S202,100. d. $196,800 Which of the following statements is correct with respect to inventories? a. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold b. It is...
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this...
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income? O A. The net income will be understated by $25,000. OB. The net income will be understated by $50,000. OC. The net income will be overstated by $50,000. OD. The net income will be overstated by $25,000.
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and...
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions a. Calculate the correct cost of goods sold and ending inventory for each year. b. Describe the impact of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021. c. Explain why it is important that Glacier Fishing Gear correct these errors as soon as they...
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...
Cage Trading Inc. counted $2,000 of inventory twice during its December 31, 2016 physical inventory count. Its December 31, 2017 inventory amount is correct. As a result of this error, 2016 ending inventory is overstated by $2,000. 2016 income is understated by $2,000. 2017 income is overstated by $2,000. 2017 cost of goods sold is understated by $2,000. Question 4 2 pts Kemp Clothing has cost of goods sold of $14,000 with beginning and ending inventories of $4.000 and $2,000....
E17.2 Quirk Hospital made inventory errors as follows: O · December 31, 20X1 inventory overstated by $400 • December 31, 20X1 inventory understated by $100 (1) By what amount was the hospital's 20X2 excess of revenues over expenses overstated or understated due to these errors? (2) By what amount were the hospital's net assets (fund balance) overstated or understated at December 31, 20X2 due to these errors?
Understating the ending inventory balance has the following impact on the current year's income statement: U A Cost of goods sold is overstated and net income is understated. B) Cost of goods sold is understated and net income is understated. Cost of goods sold is overstated and net income is overstated. D Cost of goods sold is understated and net income is overstated. OE) Cost of goods sold is overstated and net income is correct.
Cobb Company's accounting records show the following ending on December 31, 2013 Purchase Discounts Freight-in Purchases Beginning Inventory Ending Inventory Purchase Returns $ 5,600 7.800 202,000 23.500 28,800 7.400 Using the periodic system, the cost of goods purchased is a. $189,000 b. $191,500. c. S202,100. d. $196,800 Which of the following statements is correct with respect to inventories? a. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold b. It is...
The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income? O A. The net income will be understated by $25,000. OB. The net income will be understated by $50,000. OC. The net income will be overstated by $50,000. OD. The net income will be overstated by $25,000.
TULUI 30,000 30,000 Glacier made two errors: (1) 2020 ending inventory was overstated by $5,500, and (2) 2021 ending inventory was understated by $4,000. Instructions a. Calculate the correct cost of goods sold and ending inventory for each year. b. Describe the impact of the errors on profit for 2020 and 2021 and on owner's equity at the end of 2020 and 2021. c. Explain why it is important that Glacier Fishing Gear correct these errors as soon as they...
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