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!

Lindy Company's auditor discovered two errors. No errors were corrected during 2017. The errors are described as follows:  (1.) Merchandise costing $4,200 was sold to a customer for $9,200 on December 31, 2017, but it was recorded as a sale on January 2, 2018. The merchandise was properly excluded from the 2017 ending inventory. Assume the periodic inventory system is used. (2.) A machine with a five-year life was purchased on January 1, 2017. The machine cost $22,000 and has no expected salvage value. No depreciation was taken in 2017 or 2018. Assume the straight-line method for depreciation. Required:Prepare appropriate journal entries (assume the 2018 books have not been closed). Ignore income taxes.

Headlands Industries reports net income of $86,320 in 2017. However, ending inventory was understated by $6,990. What is the correct net income for 2017? The correct net income List of Accounts What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2017? in the balance sheet will be v by the amount that ending inventory is $ List of Accounts %24

The accountant for Angie Company made the following errors related to purchases of merchandise and ending inventory in 2016: 1. A $2,200 purchase of merchandise on credit was not recorded or included in ending inventory. 2. A $3,180 purchase of merchandise on credit was recorded, but it was inadvertently omitted from the end-of-year physical inventory count. Assuming a periodic inventory system, Angie's Company's 2016 net income will be a. overstated by $5,380. b. overstated by $3,180. c. understated by $2,380. d. understated by $3,180.

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…

During 2016, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: 2014 understated by $120,000 2015 overstated by 150,000 WMC uses the periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2016, before any adjustments. Explain your answer. (Ignore income taxes.) 2. Prepare a journal entry to correct the error. 3. What other step(s) would be taken in connection with the error?

During the taking of its physical inventory on December 31, 2013, Kate's Interiors Company incorrectly counted its inventory as $282,380 instead of the correct amount of $242,845. Indicate the effect of the misstatement on Kate's Interiors's December 31, 2013, balance sheet or income statement for the year ended December 31, 2013. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Cost of goods sold Current assets Gross profit Inventory Net Income Stockholders' equity Total assets

Sunflower Co. reported net income of P150,000, P180,000, and P220,000 for the years 2017, 2018, and 2019. However, the following errors were detected and were not yet corrected:·        2017 ending inventory is overstated by P6000.·        2018 beginning inventory is overstated by P6000.·        A prepayment for rent for three years amounting to P9000 was expensed in full in 2018.How much is the correct 2019 net income?

As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company inventory was determined to be $61,500. The auditors for Mona Lisa suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: Inventory (1/1/16) $ 130,000 Purchases (2016) 760,000 Sales (2016) 1,020,000 Sales returns (2016) 60,000 Gross profit ratio 25% of sales Using the gross profit method, what did the auditors estimate as the amount of the inventory that should have been on hand at December 31, 2016? a. $170,000 b. $ 61,500 c. $125,000 d. $240,000