A $25,000 overstatement
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A $25,000 overstatement of the 2021 ending inventory was discovered after the financial statements for 2021 were prepared. Which of the following describes the effect of the inventory error on the 2022 financial statements? Multiple Choice Net income and
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- 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?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?Company Edgar 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 12,000. 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?
- For each of the following inventory errors occurring in 2021, determine the effect of the error on 2021's cost of goods sold, net income, and retained earnings using understated (U), overstated (O), or no effect (NE). Assume that the error is not discovered until 2022 and that a periodic inventory system is used. Ignore income taxes. Cost of Goods Sold Retained Net Income Earnings 1. Overstatement of ending inventory U 2. Overstatement of purchases 3. Understatement of beginning inventory 4. Freight-in charges are understated 5 Understatement of ending inventory 6. Understatement of purchases 7. of beginning inventory 8. Understatement of purchases plus understatement of ending inventory by the same amountPow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. The error in 2018 will have what effect on Pow Corp.? Oa. 2018 net income is understated by $750. Ob. 2018 net income is overstated by $750. Oc. 2019 net income is understated by $750. Od. Both b and c are correct.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…
- Indigo Corporation reports net income of $91,780 in 2022. However, ending inventory was understated by $7,010. What is the correct net income for 2022? The correct net income $enter the correct net income in dollars What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2022?Total assets in the balance sheet will be select an option overstatedunderstated by the amount that ending inventory is select an option understatedoverstated, $enter a dollar amountAssume that in 2021, Graham Company discovered that December 31, 2019 inventory was overstated. Discuss the impact that this error would have had on 2019 net income, 2020 net income and the combined net income of the two years.This is a multiple answer question. Duncan Company miscounted its ending inventory during the December 31, 2025 physical count. Which items will be wrong on the 2025 financial statements assuming this mistake is not discovered until the next year? (Choose all that apply). A. Noncurrent assets B. Net income C. Inventory D. Liabilities E. Cost of goods sold
- Inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders' equity? a.net income is understated, assets are understated, and stockholders' equity is overstated b.net income is understated, assets are understated, and stockholders' equity is understated c.net income is overstated, assets are overstated, and stockholders' equity is overstated d.net income is overstated, assets are overstated, and stockholders' equity is understatedIf the beginning inventory for 2025 is overstated, the effects of this error on cost of goods sold for 2025, net income for 2025, and assets at December 31, 2026, respectively, are Ⓒ understatement, overstatement, no effect. O understatement, overstatement, overstatement. Ⓒoverstatement, understatement, no effect. O overstatement, understatement, overstatement.(S) porins) An audit of Antwren revealed four errors that were made but never corrected. In 2021, ending inventory was overstated by $201, 000 and depreciation was overstated by $44,000. In 2022, nding inventory was understated by $111, 000 and wages expens as understated by $86, 000. What effect did these errors have 0 htwren's 2022 net income? (RE&CF 6) understated by $226, 000 overstated by $132, 000 pverstated by $157,000 inderstated by $25,000