Question

wa Capwell Corporation uses a periodic ventory system. The company's ending wiventory on December 31, 2018, s fecal year end based on a physical count, was determined to be $346.000 Capwell's unachusted trial balance also showed the following account balances: Purchases, 5820,000, Accounts payable, $310.000. Accounts receivable, $325,000, Sales revenue, $1.000.000 The internal audit department discovered the following items 1 Goods valued at $52.000 held on consignment from Dex Company were included in the physical count but not recorded as a purchase 2 Purchases from Xavier Corporation were incorrectly recorded at $82.000 instead of the correct amount of $28.000 The correct amount was included in the ending inventory 3. Goods that cost $45.000 were shipped from a vendor on December 28, 2018 terms fob destination. The merchandise arrived on January 3, 2019 The purchase and related accounts payable were recorded in 2018 4. One inventory item was incorrectly included in ending inventory as 300 units, instead of the correct amount of 2000 units. This dem cost $0 per unit 5 The 2017 balance sheet reported inventory of $552000 The internal auditors discovered that a mathematical error caused this Inventory to be understated by $82.000 This amount is considered to be material Comparative financial statements will be issued 6 Goods shipped to a customer to destination on December 25, 2018 were received by the customer on January 4, 2019. The sales price was $60,000 and the merchandise cost $32,000. The sale and corresponding accounts receivable were recorded in 2018 7. Goods shipped from a vendor fob shipping point on December 27, 2018, were received on January 3, 2019. The merchandise cost $38000 The purchase was not recorded until 2019 Required: 1. Determine the correct amounts for 2018 ending inventory purchases, accounts payable, accounts receivable, and sales revenue 2. Calculate cost of goods sold for 2018 3. What was the effect of the error in ending inventory on 2017 before tax income? Complete this question by entering your answers in the tabs below. < Prev 10 of 10 Next