Homework Answers
Ending inventory of 2021 would become beginning inventory of 2022. Due to understated beginning inventory of $40, net income of 2022 would be overstated by $40
In 2021, ending inventory is understated by $40 and thus due to this error 2021 net income is understated by $40. Thus, retained earnings on 12/31/2021 would be understated by $40.
Correct option is (d)
2022 Net income overstated $40, 12/31/2021 Retained earnings understated by $40
Kindly comment if you need further assistance. Thanks
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Given the following Ending Inventory errors for the Portland Company: Ending Inventory Error Year Overstated $30...
1. In preparing its August 31 bank reconciliation, Reinstein Corp. has available the following balance per...
1. In preparing its August 31 bank reconciliation, Reinstein
Corp. has available the following balance per bank
and reconciling items:
The 8/31 correct balance of cash is:
Select one:
a. $17,650
b. $18,050
c. $16,850
d. $19,050
e. $17,450
2.Given the following Ending Inventory errors for the Portland
Company:
Indicate the error in 2017 Net Income and 12/31/17 Retained
Earnings:
Select one:
a. Net Income Overstated $10, Retained Earnings Understated
$30
b. Net Income Understated $70, Retained Earnings Understated
$30...
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1. In preparing its August 31 bank reconciliation, Reinstein
Corp. has available the following balance per bank
and reconciling items:
The 8/31 correct balance of cash is:
Select one:
a. $17,650
b. $18,050
c. $16,850
d. $19,050
e. $17,450
2.Given the following Ending Inventory errors for the Portland
Company:
Indicate the error in 2017 Net Income and 12/31/17 Retained
Earnings:
Select one:
a. Net Income Overstated $10, Retained Earnings Understated
$30
b. Net Income Understated $70, Retained Earnings Understated
$30...
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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