Homework Answers
Answer-
| STATEMENT OF CORRECTED INCOME | ||
| YEAR | REPORTED INCOME | CORRECTED INCOME |
| 2014 | $200000 | $200000-$10000+$7000 =$1970000 |
| 2015 | $225000 | $225000+$7000+$4000 =$236000 |
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Golden Dome, Inc. made the following errors when calculating inventory amounts: Inventory Date Error Overstate by...
The following information related to ABC Inc. Date Ending Inventory Price Index December 31, 2013...
The following information related to ABC Inc. Date Ending Inventory Price Index December 31, 2013 $ 66,600 100 December 31, 2014 111,104 124 December 31, 2015 119,875 137 December 31, 2016 136,178 142 December 31, 2017 126,244 148 Use the dollar-value LIFO method to compute the ending inventory for ABC. Ending Inventory: 2013 - 2014 - 2015 - 2016 - 2017 -
24) Kendall Company reported the following net income amounts: 2014.. .................. $42,000 $67,000 2015........... In 2017,...
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Problem 5-24A Effect of inventory errors on financial statements LO 5-3 The following income statement was prepared for Frame Supplies for the year Year 1: FRAME SUPPLIES Income Statement For the Year Ended December 31, Year 1 Sales $ 73,900 Cost of goods sold (36,320 ) Gross margin 37,580 Operating expenses (8,775 ) Net income $ 28,805 During the year-end audit, the following errors were discovered: An $1,230 payment for repairs was erroneously charged to the Cost of Goods Sold...
The following information relates to the Tamarisk Company. Ending Inventory Price (End-of-Year Prices) Index Date December...
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The following information relates to the Pina Company. Date December 31, 2013 December 31, 2014 December...
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8. (10 points) The following information relates to the Windsor Company. Ending Inventory Price Date (End-of-Year...
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An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by...
An audit revealed that in determining these amounts, the ending
inventory for 2016 was overstated by $22,000. The inventory balance
on December 31, 2017, was accurately stated. The company uses a
periodic inventory system.
Required:
1. Restate the partial income statements to
reflect the correct amounts, after fixing the inventory error.
2-a. Compute the gross profit percentage for
each year (a) before the correction and (b) after
the correction.
2-b. Does the pattern of gross profit
percentages lend confidence to...
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Analysis and Correction of Errors ACPA was engaged by Blackbird Company in 2015 to examine its...
Analysis and Correction of Errors ACPA was engaged by Blackbird Company in 2015 to examine its books and records and to make whatever corrections are necessary. An examination of the accounts discloses the following. (a) Dividends had been declared on December 15 in 2012 and 2013 but had not been entered in the books until paid. (b) Improvements in buildings and equipment of $10,800 had been debited to expense at the end of April 2011. Improvements are estimated to have...
Chapter 05 Homework Saved Navajo Company's financial statements show the following. The company recently discovered that...
Chapter 05 Homework Saved Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $58,000, and inventory on December 31, 2018, is overstated by $28,000. points For Year Ended December 31 (a) Cost of goods sold (b) Net income (C) Total current assets (d) Total equity 2017 $ 733,000 276,000 1,255,000 1,395,000 2018 $ 963,000 283,000 1,368,000 1,588,000...
24) Kendall Company reported the following net income amounts: 2014.. .................. $42,000 $67,000 2015........... In 2017, the company discovered errors that had been made in computing the ending inventories for 2014 and 2015, as follows: 2014 2015 Ending inventory overstated by $9,000. Ending inventory understated by $6,000. The corrected net income for the year 2015 is 52,000 64,000 70,000 73,000 82,000
The following information relates to the Tamarisk Company. Ending Inventory Price (End-of-Year Prices) Index Date December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 $ 66,100 119,210 129,050 145,200 134,316 100 131 145 150 156 Use the dollar-value LIFO method to compute the ending inventory for Tamarisk Company for 2013 through 2017
The following information relates to the Pina Company. Date December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Ending Inventory (End-of-Year Prices) $ 65,400 107,690 115,976 130,410 121,104 Price Index 100 121 133 138 144 Use the dollar-value LIFO method to compute the ending inventory for Pina Company for 2013 through 2017. Ending Inventory 2013 2014 2015 2016 2017
8. (10 points) The following information relates to the Windsor Company. Ending Inventory Price Date (End-of-Year Prices) Index December 31, 2013 $ 63,500 100 December 31, 2014 105,434 119 December 31, 2015 113,446 December 31, 2016 128,792 December 31, 2017 118,158 141 Use the dollar-value LIFO method to compute the ending inventory for Windsor Company for 2013 through 2017.
An audit revealed that in determining these amounts, the ending
inventory for 2016 was overstated by $22,000. The inventory balance
on December 31, 2017, was accurately stated. The company uses a
periodic inventory system.
Required:
1. Restate the partial income statements to
reflect the correct amounts, after fixing the inventory error.
2-a. Compute the gross profit percentage for
each year (a) before the correction and (b) after
the correction.
2-b. Does the pattern of gross profit
percentages lend confidence to...
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...
Analysis and Correction of Errors ACPA was engaged by Blackbird Company in 2015 to examine its books and records and to make whatever corrections are necessary. An examination of the accounts discloses the following. (a) Dividends had been declared on December 15 in 2012 and 2013 but had not been entered in the books until paid. (b) Improvements in buildings and equipment of $10,800 had been debited to expense at the end of April 2011. Improvements are estimated to have...
Chapter 05 Homework Saved Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $58,000, and inventory on December 31, 2018, is overstated by $28,000. points For Year Ended December 31 (a) Cost of goods sold (b) Net income (C) Total current assets (d) Total equity 2017 $ 733,000 276,000 1,255,000 1,395,000 2018 $ 963,000 283,000 1,368,000 1,588,000...
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