In 2007, after the 20X6 annual financial statements had been issued, Marcella Stores Inc. discovered that a significant transposition error had been made in recording the ending inventory for 20X6. The inventory had been recorded as $5,260,000 when it should have been $2,560,000. The average income tax rate is 30%. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare any journal entries that would be necessary in 20X7 to correct this error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry to ajdust the error in inventory.

In 2007, after the 20X6 annual financial statements had been issued, Marcella Stores Inc. discovered that a significant transposition error had been made in recording the ending inventory for 20X6. The inventory had been recorded as $5,260,000 when it should have been $2,560,000. The average income tax rate is 30%. Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare any journal entries that would be necessary in 20X7 to correct this error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry to ajdust the error in inventory.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...

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