Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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The Mike Tomlin Company has a calendar-year accounting period. The
following error was discovered in April of 2019. This error would have
affected the financial statements for 2017 and 2018. The ending balance in
the inventory had been overstated at 12/31/2017 by $100,000.
INSTRUCTIONS: Compute the effect this error had on the 2017 net income.
Compute the effect, if any, each error had on the December 31, 2017
balance sheet items. Hint: be very careful about the time period!
The income statement of TINKER CORP. shows a net income of P175,000 for the year
ended December 31, 2014. Adjustments were made for the following errors:
1
December 31, 2013, inventory overstated by P22,500.
2
December 31, 2014, inventory understated by P37,500.
3
A P10,000 customer's deposit received in December 2014, was credited to sales
in 2014. The goods were actually shipped in January 2015.
What is the unadjusted net income of Uruguay Co. for the year ended December 31,
2014?
А.
P234,000
C.
P170,000
P125,000
D.
P200,000
B.
Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts
of inventory, it had made the following errors: Year 1 ending inventory is understated by $66,000 and Year 2 ending inventory is
overstated by $36,000.
Mc
raw
Will
For Year Ended December 31
(a) Cost of goods sold
(b) Net income
(c) Total current assets
(d) Total equity
Required:
1. For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the
reported amounts.
2. What is the total error in combined net income for the three-year period resulting from the inventory errors?
Required 1 Required 2.
Complete this question by entering your answers in the tabs below.
Cost of goods sold:
Reported amount
Adjustment for 12/31/Year 1 error
Adjustment for 12/31/Year 2 error
Corrected amount
Year 1
$ 741,000
Year 2
$ 971,000
291,000
1,376,000
284,000
1,263,000
1,403,000 1,596,000
For each key…
Chapter 5 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 5 - Describe how costs flow from inventory to cost of...Ch. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - If inventory errors are said to correct...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - When preparing interim financial statements, what...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Prob. 11DQCh. 5 - Refer to Samsung’s financial statements in...Ch. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Refer to the information in QS 5-10 and assume the...Ch. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Identify the inventory costing method best...Ch. 5 - Prob. 19QSCh. 5 - In taking a physical inventory at the end of the...Ch. 5 - Prob. 21QSCh. 5 - Confucious Bookstore’s inventory is destroyed by a...Ch. 5 - Answer each of the following questions related to...Ch. 5 - Prob. 24QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Laker Company reported following January purchases...Ch. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Tree seedlins has the following current-year...Ch. 5 - Prob. 1PSACh. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Prob. 7PSACh. 5 - QP Corp. sold 4,000 units of its product at $50...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Prob. 5PSBCh. 5 - Hallam Company’s financial statements show the...Ch. 5 - Prob. 7PSBCh. 5 - Shepard Company sold 4,000 units of its product at...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Santana Rey of Business solutions is evaluating...Ch. 5 - Prob. 5.2SPCh. 5 - Prob. 1FSACh. 5 - Prob. 2FSACh. 5 - Prob. 3FSACh. 5 - Golf Challenge Corp. is a retail sports store...Ch. 5 - Prob. 2BTNCh. 5 - Prob. 5BTN
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