Lime Supplies had a miscount of inventory at $22,000 for the year end May 31, 2022. The correct amount should have been $25,000. If this error was never corrected, and assuming the inventory count was correct for 2023, how much would this error impact the cost of
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- If a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2If Barcelona Companys ending inventory was actually $122,000, but the cost of consigned goods, with a cost value of $20,000 were accidentally included with the company assets, when making the year-end inventory adjustment, 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 Wakowski Companys 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?
- In 2022, matapat A. CO reported net inxom of P18,000. The correct net income was 25,000. It was determined tharvthe ending inventory was overstated by P3,000 while the purchases was understated by P1,000. The only other error was with the beginning inventort which would be a. 11,000 over b.5,000 over c. 9,000 under d.3,0000 underThis is a multiple answer question. Duncan Company miscounted its ending inventory during the December 31, 2025 physical count. Which items will be wrong on the 2025 financial statements assuming this mistake is not discovered until the next year? (Choose all that apply). A. Noncurrent assets B. Net income C. Inventory D. Liabilities E. Cost of goods soldVader Corporation made two errors in counting inventory: Ending inventory for 2019 was overstated by $15,000, and ending inventory for 2020 was understated by $12,000. If neither error was corrected, what will be the error (before taxes) in 2020 net income? a.Overstated $27,000. b.Understated $27,000. c.Overstated $3,000. d.Understated $3,000.
- Bonita Company understated its 2022 ending inventory by $30,100. Determine the impact this error has on ending inventory, cost of goods sold, and owner’s equity in 2022 and 2023. 2022 2023 Ending inventory select an effect OverstatedNo EffectUnderstated select an effect UnderstatedOverstatedNo Effect Cost of goods sold select an effect OverstatedNo EffectUnderstated select an effect OverstatedUnderstatedNo Effect Owner’s equity select an effect No EffectOverstatedUnderstated select an effect UnderstatedOverstatedNo EffectWhispering Winds Supply Company reports net income of $141,600 in 2023. The ending inventory did not include goods valued at $10,620 that Whispering Winds Supply had consigned to Staples. (For question answer please scroll far right) (1) What impact will this error have on the income statement for 2023? If ending inventory is ✓by $ (2) (3) What is the correct net income for 2023? The correct net income is $ 2 On the balance sheet, both inventory and retained earnings will be cost of goods sold will be What impact will this error have on the balance sheet at December 31, 2023? by $ and netAn 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
- A company incorrectly counted their inventory as of December 31, 2021, resulting in ending inventory being overstated by $9,000. Ending inventory as of December 31, 2022 was also overstated by $24,000. What was the impact on COGS for the year ended December 31, 2022 as a result of the overstatements in ending inventory? A. understated by $15,000 B. overstated by $15,000 C. understated by $33,000 D. understated by $33,000 E. overstated by $24.000At December 31, 2018, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2018? a. Overstates cost of goods sold and understates net income b. Understates cost of goods sold and overstates net income c. Leaves both cost of goods sold and net income correct because the errors cancel each other d. Overstates both cost of goods sold and net incomeShockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit (c) Total current assets (d) Equity a. Cost of goods sold: Reported Adjustments: Dec. 31, 2020 error Dec. 31, 2021 error In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $80,000 • Inventory on December 31, 2021: overstated $22,000 Corrected b. Profit: Required: For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a min sign.) Reported Adiustments: Dec. 31. 2020 error $ $ $ $ 2020 Financial Statements for Year Ended December 31. 2022 820,000 281,000 2020 2021 765,000 $ 897,000 $ 270,000 325,000 1,255,000 1,365,000 1,387,000 1,530,000 270,000 $ 80.0001 2021 1,200,000 1,332,000 2022 765,000 $ 897,000 $ 820,000 (80,000)…