Flounder Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses the perpetual inventory system. Date Explanation Units Unit Cost/Price Total Cost Apr. Beginning inventory 30 $45 $1,350 6. Purchases 15 44 660 9. Sales (35 ) 80 14 Purchases 20 43 860 20 Sales (25 ) 80 28 Purchases 20 37 740

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Flounder Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses the
perpetual inventory system.
Date
Explanation
Units
Unit Cost/Price
Total Cost
Apr.
1 Beginning inventory
30
$45
$1,350
6 Purchases
15
44
660
6.
Sales
(35 )
80
14
Purchases
20
43
860
20
Sales
(25 )
80
28
Purchases
20
37
740
(a)
712
PE
22
W
帝,
000
Transcribed Image Text:Flounder Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses the perpetual inventory system. Date Explanation Units Unit Cost/Price Total Cost Apr. 1 Beginning inventory 30 $45 $1,350 6 Purchases 15 44 660 6. Sales (35 ) 80 14 Purchases 20 43 860 20 Sales (25 ) 80 28 Purchases 20 37 740 (a) 712 PE 22 W 帝, 000
(c)
If the company had not discovered this shortage, identify what accounts would be overstated or understated and by what amount.
(Round answers to 2 decimal places, e.g. 1.25.)
Merchandise Inventory
Cost of Goods Sold
Retained Earnings
$
712
22
g0 F3
000
000
F4
F2
F5
F6
F7
F8
F9
F10
FI1
$
4
&
*
5
6
7
8
9.
CO
%24
%24
%# 3
Transcribed Image Text:(c) If the company had not discovered this shortage, identify what accounts would be overstated or understated and by what amount. (Round answers to 2 decimal places, e.g. 1.25.) Merchandise Inventory Cost of Goods Sold Retained Earnings $ 712 22 g0 F3 000 000 F4 F2 F5 F6 F7 F8 F9 F10 FI1 $ 4 & * 5 6 7 8 9. CO %24 %24 %# 3
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