Homework Answers
| Option C | |
| When the ending inventory is overstated, cost of goods sold will be undetstated and therefore the net income will be overstated by the amount cost of goods sold is understated. |
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QUESTION 2 An error in the physical count of goods on hand at the end of...
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....
2. For each of the independent events listed below, analyze the impact on the indicated items...
2. For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. (20%) Code: 0 = item is overstated U = item is understated NA = item is not affected Items Cost of Goods Sold Net Income Assets Equity Events 1. A physical count of goods on hand at the end of the current year resulted in...
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...
F. INVENTORY ERRORS AND ESTIMATION (10 Marks) For each of the independent events listed below. using...
F. INVENTORY ERRORS AND ESTIMATION (10 Marks) For each of the independent events listed below. using a perpetual inventory system, analyze the mos on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. Code: o item is overstated U = item is understated NA item is not affected Owner's Cost of Net Assets Equity Goods Sold Income Events O M O The ending inventory in the previous...
26. If ending inventory is understated by $10,000, the effect of this error in the current...
26. If ending inventory is understated by $10,000, the effect of this error in the current period COGS a. Understated b. Overstated c. Understated d. Overstated Net Income Understated Overstated Overstated Understated
Cirl Fn AT Insert Delee Cobb Company's accounting reconds show ihe following at the year ending...
Cirl Fn AT Insert Delee Cobb Company's accounting reconds show ihe following at the year ending on December 31, 2013 S 5,600 7800 202,000 23,500 Purchase Discousts Freight in Purchases Beginning Iaventory Ending Inventory Purchase Retures 28,800 7,400 Using the periodic system, the cost of goods purchased is a $189,000 b S191,500. c $202,100. d S196,800 Which of the following statements is coerect with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are...
Name 1. Actually counting the goods on hand at the end of the accounting period and...
Name 1. Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called a. b. c. the cost of goods sold. the physical inventory. freight-in. accumulated depreciation. 2. Unearned revenue is reported as a(n) current liability on the balance sheet. b. contra-asset account on the chart of accounts owner's equity account on the work sheet. asset on the balance sheet. d. 3. The income...
British Columbia Institute of Technology FMGT 1100-Accounting 1 Fer eech of the independent events lated below...
British Columbia Institute of Technology FMGT 1100-Accounting 1 Fer eech of the independent events lated below uning a perpetual imventory systtem, analyae the impact the indicated tems at the end of the ornent vear by placing the appropriate code letter in the bou nder each tem Code O F mVENTORy cRRORS ANo ESTIMGA TION (1O Marks) nem is ovestated te is understated em is not affected Net Cost of NA Owner's Equity Goods Sold income Assets fvents The ending inventory...
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...
accountant for Susan company made the following areas related to inventory in 20 The accountant for...
accountant for Susan company made the following areas related
to inventory in 20
The accountant for Suzanne Company made the following errors related to inventory in 2017 1. The beginning inventory for 2017 was overstated by $1,375 due to an error in the physical count. 2. A $1,650 purchase of merchandise on credit in 2017 was not recorded or included in the ending inventory Assuming a periodic inventory system, how would Sue's costs of goods sold, gross profit, and net...
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....
2. For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. (20%) Code: 0 = item is overstated U = item is understated NA = item is not affected Items Cost of Goods Sold Net Income Assets Equity Events 1. A physical count of goods on hand at the end of the current year resulted in...
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...
F. INVENTORY ERRORS AND ESTIMATION (10 Marks) For each of the independent events listed below. using a perpetual inventory system, analyze the mos on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. Code: o item is overstated U = item is understated NA item is not affected Owner's Cost of Net Assets Equity Goods Sold Income Events O M O The ending inventory in the previous...
26. If ending inventory is understated by $10,000, the effect of this error in the current period COGS a. Understated b. Overstated c. Understated d. Overstated Net Income Understated Overstated Overstated Understated
Cirl Fn AT Insert Delee Cobb Company's accounting reconds show ihe following at the year ending on December 31, 2013 S 5,600 7800 202,000 23,500 Purchase Discousts Freight in Purchases Beginning Iaventory Ending Inventory Purchase Retures 28,800 7,400 Using the periodic system, the cost of goods purchased is a $189,000 b S191,500. c $202,100. d S196,800 Which of the following statements is coerect with respect to inventories? The FIFO method assumes that the costs of the earliest goods acquired are...
Name 1. Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called a. b. c. the cost of goods sold. the physical inventory. freight-in. accumulated depreciation. 2. Unearned revenue is reported as a(n) current liability on the balance sheet. b. contra-asset account on the chart of accounts owner's equity account on the work sheet. asset on the balance sheet. d. 3. The income...
British Columbia Institute of Technology FMGT 1100-Accounting 1 Fer eech of the independent events lated below uning a perpetual imventory systtem, analyae the impact the indicated tems at the end of the ornent vear by placing the appropriate code letter in the bou nder each tem Code O F mVENTORy cRRORS ANo ESTIMGA TION (1O Marks) nem is ovestated te is understated em is not affected Net Cost of NA Owner's Equity Goods Sold income Assets fvents The ending inventory...
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...
accountant for Susan company made the following areas related
to inventory in 20
The accountant for Suzanne Company made the following errors related to inventory in 2017 1. The beginning inventory for 2017 was overstated by $1,375 due to an error in the physical count. 2. A $1,650 purchase of merchandise on credit in 2017 was not recorded or included in the ending inventory Assuming a periodic inventory system, how would Sue's costs of goods sold, gross profit, and net...
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