thank you for your time and doing this. I would do this problem but I dont understand it and so I am using this app lol. Problems: Set A Problems: Set P6.1A (LO 1) Houghton Limited is trying to determ February 28, 2020, the company's year-end. The following imited is trying to determine the value of its ending inventory as...
At December 31, 2019, Sharon Lee Corporation reported current assets of $343,980 and current liabilities of $196,600. The following items may have been recorded incorrectly Goods purchased costing $20.440 were shipped f.o.b. shipping point by a supplier on December 28. Lee received and recorded the invoice on December 29, 2019, but the goods were not included in Lee's physical count...
Goods purchased were shipped Dec. 31, 2018. Goods and invoice were not received until January 10, 2019. FOB shipping. The company’s practice is not to record liability until the receipt of the invoice. Is this an unrecorded liability as of 12/31/18? Was 2018 net income misstated?
At December 31, 2019, Laura Hall Corporation reported current assets of $335,780 and current liabilities of $201,400. The following items may have been recorded incorrectly. Compute the current ratio based on Hall’s balance sheet. Recompute the current ratio after corrections are made. By what amount will income (before taxes) be adjusted up or down as a result of the corrections?...
Exercise 8-25 (Part Level Submission) At December 31, 2016, Bridgeport Corporation reported current assets of $404,870 and current liabilities of $197,500. The following items may have been recorded incorrectly 1. Goods purchased costing $21,690 were shipped f.?.b. Shipping point by a supplier on December 28, Bridgeport received and recorded the invoice on December 29, 2016, but the goods were not...
Umatilla Bank and Trust is considering giving Bridgeport Corp. a loan. Before doing so, it decides that further discussions with Bridgeport Corp.'s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $302,140. Discussions with the accountant reveal the following 1. Bridgeport Corp. sold goods costing $57,920 to Hemlock Company FOB...
Problem # 3 (Inventory Errors) At December 31, 2016, McGlaggen Corporation reported current assets of $638,000 and current liabilities of $384,000. The following items may have been recorded incorrectly. McGlaggen uses the periodic method. 1. Goods purchased costing $10,000 were shipped f.o.b. destination by a supplier on December 26. McGlaggen received and recorded the invoice on December 31, 2016 but...
Thomas Taylor, an auditor with Knapp CPAs, is performing a review of Vaughn Company's inventory account. Vaughn did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $638,000. However, the following information was not considered when determining that amount. 1. Included in the company's...
Daniel Jackson, an auditor with Knapp CPAs, is performing a review of Waterway Company's inventory account. Waterway did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $622,000. However, the following information was not considered when determining that amount. 1. Included in the company's...
At December 31, 2019, Elizabeth Brown Corporation reported current assets of $384,510 and current liabilities of $212,400. The following items may have been recorded incorrectly. 1. Goods purchased costing $21,860 were shipped f.o.b. shipping point by a supplier on December 28. Brown received and recorded the invoice on December 29, 2019, but the goods were not included in Brown's physical...