Question

CALCULATOR STANDARD VIEW PRINTER VERSION BACK NEXT Exercise 6-11 (Part Level Submission) Marigold Corp. reported the following income statement data for a 2-year period. 2018 2019 $215,000 $257,500 Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 32,500 192,500 225,000 44,000 181,000 $34,000 44,000 217,500 261,500 55,000 206,500 $51,000 Gross profit Marigold Corp. uses a periodic inventory system. The inventories at January 1, 2018, and December 31, 2019, are correct. However, the ending inventory at December 31, 2018, was overstated $6,000. (a) Prepare correct income statement data for the 2 years. 2018 2019 Sales Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

→ As the the ending Inventory at dec. 31-2018 was overstated by $6000 correct value of end-gor @ dec-31 2018 is $440.00 - $6000 $38000 a And the op.grr as at oljen: 2019 is also changes because of the ending Inventory was taken before as op for current year. Therefore correct opening Inventory as at Ol In 2019 is $38000. correct income stalenent for 2 years : particulars 2018 2019 $215000 $257500 sales (a) cost of goods sold Beg. Inventing prachases $ 32.500 $38000 $192500 $217500 cost of S goods oval too sale $225000 $255500 $ 55000 Ending Inventory cost of goods sold (4) $38000 $187000 $28000 $200500 $57000 Gross profit (a-b) Thanks