Here is the original schedule of cost of goods sold for Topley Company for the years of 2019 through 2022 (Click the icon to view the original schedule of cost of goods sold.) During the preparation of its 2022 financial statements, Topley Company discovered that its 2020 ending inventory was understated by $200. Make the correction to the 2020 ending inventory and all other numbers in the schedule of cost of goods sold for any years affected and answer these questions Make the correction to the 2020 ending inventory and all other numbers in the schedule of cost of goods sold for any years affected. + Beginning inventory Purchases. 2022 350 1050 all 2021 2020 750 1,100 REG 2019 650 950 1.000

Here is the original schedule of cost of goods sold for Topley Company for the years of 2019 through 2022 (Click the icon to view the original schedule of cost of goods sold.) During the preparation of its 2022 financial statements, Topley Company discovered that its 2020 ending inventory was understated by $200. Make the correction to the 2020 ending inventory and all other numbers in the schedule of cost of goods sold for any years affected and answer these questions Make the correction to the 2020 ending inventory and all other numbers in the schedule of cost of goods sold for any years affected. + Beginning inventory Purchases. 2022 350 1050 all 2021 2020 750 1,100 REG 2019 650 950 1.000

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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In 2020 Fy Co. decided to change to the FIFO method for inventory . The Cost of Goods Sold in 1919 was $300,000 under LIFO. Under FIFO it would have been $250,000 . In 2020 under FIFO Cost of Goods Sold would have been $360,000 whereas under LIFO It would have been $410,000. Journalize all necessary adjusting entries for 2020.
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1. In 2021, Jules Company realized that its ending inventory was understated by P1,500 in 2019. How should Jules Company handle this? a. An adjustment to reduce inventory by P1,500 needs to be made b. An adjustment to increase cost of goods sold by P1,500 needs to be made. c. An adjustment to increase inventory by P1,500 needs to be made d. No adjustment needs to be made. 2. For interim reporting, a gain on disposal of land occurring in the third quarter is a. Recognized and allocated over the quarters b. Recognized and allocated over four quarters c. Recognized immediately in the third quarter d. Deferred until the annual reporting
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