The net income per books of Dorothy Taylor Company was determined without knowledge of the errors indicated below. Error in Ending Inventory Net Income Year per Books 2020 $53,000 Overstated $2.810 2021 54.970 Overstated 8.290 2022 56,960 Understated 11.140 2023 58.810 No error 2024 60,750 Understated 1.980 2025 62,930 Overstated 8,420 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Net Income Year Per Books 2020 2021 Errors in Inventories Understatement Overstatement Dec. 31 Overstatement Jan. 1 Jan. 1 $53,000 $ 54,970 2022 56,960 2023 58,810 2024 60,750 2025 62.930 $

The net income per books of Dorothy Taylor Company was determined without knowledge of the errors indicated below. Error in Ending Inventory Net Income Year per Books 2020 $53,000 Overstated $2.810 2021 54.970 Overstated 8.290 2022 56,960 Understated 11.140 2023 58.810 No error 2024 60,750 Understated 1.980 2025 62,930 Overstated 8,420 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Net Income Year Per Books 2020 2021 Errors in Inventories Understatement Overstatement Dec. 31 Overstatement Jan. 1 Jan. 1 $53,000 $ 54,970 2022 56,960 2023 58,810 2024 60,750 2025 62.930 $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14EA: If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance...

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