An error understated Golden Flash Company’s December 31, 2018, ending inventoryby $27,000. What effect will this error have on net income for 2019?a. Understate itb. Have no effect on itc. Overstate it

An error understated Golden Flash Company’s December 31, 2018, ending inventoryby $27,000. What effect will this error have on net income for 2019?a. Understate itb. Have no effect on itc. Overstate it

Name: An error understated Golden Flash Company’s December 31, 2018, ending
Uploaded: 2024-03-20T06:32:37.000Z
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Description: An error understated Golden Flash Company’s December 31, 2018, ending inventoryby $27,000. What effect will this error have on net income for 2019?a. Understate itb. Have no effect on itc. Overstate it

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If Wakowski Company's 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? If no entry is required, select "None" and leave the amount boxes blank. Balance Sheet: Merchandise Inventory $4 Current Assets Total Assets Retained Earnings Income Statement: Cost of Goods Sold Gross Profit/Gross Margin Net Income
Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? Net income will be understated by $30,000. Net income will be understated by $15,000. O Net income will be overstated by $15,000. O Net income will be overstated by $30,000. O The understatement of inventory in 2017 will not affect income in 2018.
1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.
#26 While examining the December 31, 2018 financial statements of Sydney company, the following errors are discovered: *Inventory on January 1 had been overstated by P30,000. *Inventory on December 31 was understated by P60,000. During 2018, Donna received a P120,000 cash advance from customer for merchandise to be manufactured and shipped during 2019. The amount was credited to sales revenue. *The net income reported on the 2018 income statement before reflecting any adjustment is P3,000,000. What is the corrected net income for the year ended December 31, 2018? ANSWER: 2,970,000 Pls provide solution and explanation for the answer above
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Effects of an Error in Ending Inventory Waymire Company prepared the partial statements of earnings presented below for 2022 and 2021. 2022 2021 Sales revenue $538,200 $483,700 Cost of goods sold: Beginning inventory $39,300 $32,100 Purchases 343,200 292,700 Cost of goods available for sale 382,500 324,800 Ending inventory (46,800) 335,700 (39,300) 285,500 Gross margin 202,500 198,200 Operating expenses (167,200) (151,600) Income before taxes $ 35,300 $ 46,600 During 2023, Waymire's accountant discovered that ending inventory for 2022 had been overstated by $8,200. Required: 1. Prepare corrected 1. Prepare corrected statements of earnings for 2022 and 2021. for 2022 and 2021. Use the minus sign for negative values. 2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item.…
I computed 72,540 but is checked wrong why?
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What is the net effect of the errors in FIERY’s December 31 retained earnings balance?
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