The draft accounts of Kale & Co. for the year ended 31st Mar 2022 include the following: Revenue $8,000 Gross profit $2,000. It was subsequently discovered that revenue had been understated by $1,000 and closing inventory overstated by $500.After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?
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The draft accounts of Kale & Co. for the year ended 31st Mar 2022 include the following: Revenue $8,000 Gross profit $2,000. It was subsequently discovered that revenue had been understated by $1,000 and closing inventory overstated by $500.After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?
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- If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?Tanke Company reported net income on the year-end financial statements of $850,200. However, errors in inventory were discovered after the reports were issued. If inventory was overstated by $21,000, how much net income did the company actually earn?Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
- Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: EquityAssuming a companys year-end inventory were understated by $16,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: EquityShetland Company reported net income on the year-end financial statements of $125,000. However, errors in inventory were discovered after the reports were issued. If inventory was understated by $15,000, how much net income did the company actually earn?
- The draft accounts of Collister Co. for the year ended 31st Dec 2020 include the following:Revenue $80,000Gross profit $20,000It was subsequently discovered that revenue had been understated by $10,000 and closing inventory overstated by $5,000.After correction of these errors the gross profit percentage margin will be (to 1 d.p.)?In 2022, matapat A. CO reported net inxom of P18,000. The correct net income was 25,000. It was determined tharvthe ending inventory was overstated by P3,000 while the purchases was understated by P1,000. The only other error was with the beginning inventort which would be a. 11,000 over b.5,000 over c. 9,000 under d.3,0000 underAssuming a company’s year-end inventory were overstated by $5,000, indicate the effect(overstated/understated/no effect) of the error on the following balance sheet and income statement accounts.A. Income Statement: Cost of Goods SoldB. Income Statement: Net IncomeC. Balance Sheet: AssetsD. Balance Sheet: LiabilitiesE. Balance Sheet: Equity
- For each of the following independent scenarios, indicate the effect of the error (if any) on: i. 2019 net income; ii. 2020 net income; and iii. 2020 closing retained earnings. company uses the periodic system of inventory and its fiscal year-end is December 31. Ignore income tax effects. Consider each of the following independent The scenarios: a. Your analysis of inventory indicates that inventory at the end of 2019 was overstated by $27,000 due to an inventory count error. Inventory at the end of 20 13 was correctly stated. b. Invoices in the amount of $107,000 for inventory received in December 2019 were not entered on the books in 2019. They were recorded as purchases in January 2020 when they were paid. The goods were counted in the 2019 inventory count and included in ending inventory on the 2019 financial statements. c. Goods received on consignment amounting to $89,000 were included in the physical count of goods at the end of 2020 and included in ending inventory on the 2020…The adjusted (audited) income statement of Alex Kwon Corp. shows a net income of P175,000 for the year ended December 31, 2020. Adjustments were made for the following errors: • December 31, 2019, inventory overstated by P22,500 • December 31, 2020, inventory understated by P37,500 • A P10,000 customer's deposit received in December 2020, was credited to sales in 2020. The goods were actually shipped in January 2021. What is the unadjusted net income of Alex Kwon Corp. for the year ended December 31, 2020? A. P234,000 B. P125,000 C. P170,000 D. P200,000The income statement of TINKER CORP. shows a net income of P175,000 for the year ended December 31, 2014. Adjustments were made for the following errors: 1 December 31, 2013, inventory overstated by P22,500. 2 December 31, 2014, inventory understated by P37,500. 3 A P10,000 customer's deposit received in December 2014, was credited to sales in 2014. The goods were actually shipped in January 2015. What is the unadjusted net income of Uruguay Co. for the year ended December 31, 2014? А. P234,000 C. P170,000 P125,000 D. P200,000 B.