Homework Answers
| 2021 | ||
| Cost of Goods Sold | Increase by $ 9,000 due to decrease in ending inventory balance | |
| Gross Profit | Decrease by $ 9,000 due to increase in Cost of goods sold | |
| 2022 | ||
| Cost of Goods Sold | Decrease by $ 9,000 due to decrease in opening inventory balance | |
| Gross Profit | increase by $ 9,000 due to decrease in Cost of goods sold | |
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A company understated its ending Inventory balance by $9,000 in 2021. What impact will this error...
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of good...
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? Cost of goods sold Gross profit Understated Understated 1 $ $ 2021 8,000 8,000 Cost of goods sold Gross profit Not affected Not affected 2022 $ S 0 0
Help Save G. Ex A company overstated its ending inventory balance by $7000 in 2021 What...
Help Save G. Ex A company overstated its ending inventory balance by $7000 in 2021 What impact will this error have on cost of goods sold and gross profit in 2021 and 20222 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit
Assume that due to an error during the count of its physical inventory, a company understated...
Assume that due to an error during the count of its physical inventory, a company understated the cost of its ending inventory at the end of 20X5. As a result of this error, indicate how each of the following items are affected on the company's 20X5 income statement and balance sheet. Its cost of goods sold for 20X5 will: Choose... Its ending retained earnings balance for 20X5 will: Choose... Its net income for 20X5 will: Choose...
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...
What is the cumulative effect of the inventory error on total gross profit for the 2...
What is the cumulative effect of the inventory error on total gross profit for the 2 years? (If answer is zero please enter 0, do not leave any field blank.) Total gross profit for the two years $ Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 Cost of goods purchased 197,960 169,540 Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold...
If ending inventory is understated for Year 1, then in Year 2: Question 4 options: A)...
If ending inventory is understated for Year 1, then in Year 2: Question 4 options: A) cost of goods sold will be understated and gross profit will be overstated. B) cost of goods sold and gross profit will both be overstated. C) cost of goods sold and gross profit will both be understated. D) cost of goods sold will be overstated and gross profit will be understated. Which statement is FALSE? Question 6 options: A) IFRS does not permit the...
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...
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error...
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error on the 2018's cost of goods sold and net income, respectively are: a. Understated and overstated b. Overstated and understated c. Overstated and overstated d. Understated and understated 9. In selecting an inventory costing method, give one issue that might be considered as part of the decision process.
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.
On December 31, 20xx, Jones Company understated ending inventory by $52,000. How does this error affect...
On December 31, 20xx, Jones Company understated ending inventory by $52,000. How does this error affect Cost of Goods Sold and Net Income for 20xx? a.) Overstates Cost of Goods Sold and Net Income for 20xx? b.) Overstates both COGS and Net Income c.) Understates COGS and overstates Net Income d.) Leaves both COGS and Net Income correct because the errors cancel each other
A company understated its ending inventory balance by $8,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022? Cost of goods sold Gross profit Understated Understated 1 $ $ 2021 8,000 8,000 Cost of goods sold Gross profit Not affected Not affected 2022 $ S 0 0
Help Save G. Ex A company overstated its ending inventory balance by $7000 in 2021 What impact will this error have on cost of goods sold and gross profit in 2021 and 20222 Cost of goods sold Gross profit 2022 Cost of goods sold Gross profit
Assume that due to an error during the count of its physical inventory, a company understated the cost of its ending inventory at the end of 20X5. As a result of this error, indicate how each of the following items are affected on the company's 20X5 income statement and balance sheet. Its cost of goods sold for 20X5 will: Choose... Its ending retained earnings balance for 20X5 will: Choose... Its net income for 20X5 will: Choose...
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...
What is the cumulative effect of the inventory error on total gross profit for the 2 years? (If answer is zero please enter 0, do not leave any field blank.) Total gross profit for the two years $ Sandra Company reported these income statement data for a 2-year period. 2022 2021 Sales $245,000 $205,800 Beginning inventory 39,200 29,400 Cost of goods purchased 197,960 169,540 Cost of goods available for sale 237,160 198,940 Ending inventory 49,000 39,200 Cost of goods sold...
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...
8. Fran Company's ending inventory for 2018 is understated by $5,000. The effects of this error on the 2018's cost of goods sold and net income, respectively are: a. Understated and overstated b. Overstated and understated c. Overstated and overstated d. Understated and understated 9. In selecting an inventory costing method, give one issue that might be considered as part of the decision process.
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.
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