During the taking of its physical inventory on December 31, 2014, Kate's Interiors Company incorrectly counted its inventory as $446,935 instead of the correct amount of $500,565. Indicate the effect of the misstatement on Kate's Interiors's December 31, 2014, balance sheet and income statement for the year ended December 31, 2014. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers. Cost of merchandise sold Current assets Gross profit Merchandise inventory Net income Owner's equity Total assets $ S S S S S S

During 20x3, Pryor Company changed its inventory method from the LIFO to FIFO. The beginning inventory under FIFO is $20,000 higher than under LIFO. Prepare the journal entry to record this accounting change. Ignore income tax.

Larkspur, Inc's inventory of $859,000 at December 31, 2017, was based on a physical count of goods priced at cost. The total does not include any adjustments for the following items. (a) Goods shipped from a vendor f.o.b. destination on December 24, 2017, at an invoice cost of $7,000 to Larkspur were received on January 4, 2018. These goods were excluded from the physical count. (b) The physical count excluded goods held by a retailer (Deals Corp.) on consignment for Larkspur, Inc. The cost of these goods to Larkspur was $ 32,500. Larkspur did not record a sale when it shipped the goods to Deals. (c) The inventory included $ 48,000 of goods that were in Larkspur's warehouse on the morning of December 31, 2017 but were shipped to a customer fo.b. shipping point later that day, after they had been included in the physical inventory count. What inventory amount should appear on Larkspur's December 31, 2017 balance sheet? Inventory to be reported $ eTextbook and Media

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.

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On August 31, 2010, Harvey Co. decided to change from the FIFO periodic inventory system to the weightedaverage periodic inventory system. Harvey is on a calendar year basis. The cumulative effect of the change is determineda. As of January 1, 2010.b. As of August 31, 2010. c. During the eight months ending August 31, 2010, by a weighted-average of the purchases.d. During 2010 by a weighted-average of the purchases.

In 2016, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2015 of $127,000 would have been $145,000 if FIFO had been used. Inventory at the end of 2016 is $162,000 using the new FIFO method but would have been $151,000 if the company had continued to use LIFO. Describe the steps Hopyard should take to report this change. What is the effect of the change on 2016 cost of goods sold?

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. Inventory at 12/31/2022 was understated by $6,400. b. Inventory at 12/31/2023 was overstated by $9,800. c. On 12/31/2023, inventory was purchased for $3,400. The company did not record the purchase until the inventory was paid for early in 2024. At that time, the purchase was recorded by a debit to purchases and a credit to cash. The company uses a periodic inventory system. Required: 1. Assuming that the errors were discovered after the 2023 financial statements were issued, analyze the effect of the errors on 2023 and 2022 cost of goods sold, net income, and retained earnings. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.

The following data pertains to Integrity Company that adopts a defined benefit plan for its employees: ⚫ Defined benefit obligation, January 1, 2021 - P4,800,000 • Plan assets at fair value, January 1, 2021 - P6,250,000 For the year 2021: ⚫ Current service cost - P560,000 • Contributions made to the fund - P750,000 • Benefits paid to employees - P1,350,000 • Discount rate - 10% • Defined benefit obligation after remeasurement on December 31, 2021 P4,550,000 • Actuarial loss on plan assets - P31,000 How much is the Defined Benefit Liability/Asset at December 31, 2021? Choices: 1,206,000 Liability 1,206,000 Assets 1,694,000 Liability 1,694,000 Asset Show your computation

JC Corporation is in the process of adjusting and closing the books and preparing financial statements at the end of the year, December 31, 2014. One item of concern is in the ending inventory of goods on hand. After the count had been completed, additional items not included in the storeroom count were listed for consideration. You are to consider each item and decide whether it should be included in the ending inventory for 2014.                                                                                                                                                                               Cost                               Merchandise Inventory Valuation Initial inventory valuation based on a count of all goods on hand only, unless otherwise noted            P 200,000 (a) Goods in a back room of the store were not included in the storeroom count at purchase cost. They are damaged and will be disposed of as salvage.       P 1,400 (b) Goods shipped on December 30, FOB…