In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged...

Question

Question

In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged to adver

Required Required Prepare a journal entry to correct the errors. (If no entry is required for a transaction/event, select No

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

1.

Retained earnings would be understated by $46,000

2.

Inventory	46,000
Retained earnings		46,000

Add a comment

Answer 2

Similar Homework Help Questions

In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged...

In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $46,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors...
In 2021, the controller of Sytec Corporation discovered that $54,000 of inventory purchases were incorrectly charged...

In 2021, the controller of Sytec Corporation discovered that $54,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $36,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors...
ter 9 GRADED O In 2018, the controller of Sytec Corporation discovered that $60,000 of inventory...

ter 9 GRADED O In 2018, the controller of Sytec Corporation discovered that $60,000 of inventory purchases were incorrectly charged to advertising expense in 2017. In addition, the 2017 year-end Inventory count failed to include $39,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material no @ Do Required:...

During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated...

During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: understated by 2019 $138,000 168,000 overstated by 2020 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (lgnore income taxes) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! During 2021, WMC Corporation...

PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 2020 understated by overstated by $129,000 159,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct...
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $462,000. Included in...

The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $462,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $62,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $26,000 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the...

You have been hired as the new controller for the Ralston Company. Shortly after joining the...

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021, you discover the following errors related to the 2019 and 2020 financial statements: a. Inventory at 12/31/2019 was understated by $7,100. b. Inventory at 12/31/2020 was overstated by $11,200. c. On 12/31/2020, inventory was purchased for $4,100. The company did not record the purchase until the inventory was paid for early in 2021. At that time, the purchase was recorded by...
help? The December 31, 2021, inventory of Tog Company, based on a physical count, was determined...

help? The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $452,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $52,000. The purchase was recorded paid for in 2022. Another supplier shipment costing $21,000 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the...
You have been hired as the new controller for the Ralston Company. Shortly after joining the...

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2021, you discover the following errors related to the 2019 and 2020 financial statements: a. Inventory at 12/31/2019 was understated by $7,400. b. Inventory at 12/31/2020 was overstated by $11,800 c. On 12/31/2020, inventory was purchased for $4,400. The company did not record the purchase until the inventory was paid for early in 2021. At that time, the purchase was recorded by...

Please solve for Requirement #2 The December 31, 2021, inventory of Tog Company, based on a...

Please solve for Requirement #2 The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $467,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $67,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $28,500 was correctly recorded as a purchase in 2021. However, the merchand ise, shipped FOB shipping point, was not received until 2022...

In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged...

Homework Answers