1. What is the correct net income for the year 2021? 2. What is the correct net income for the year 2022?
1. What is the correct net income for the year 2021? 2. What is the correct net income for the year 2022?
Chapter10: Inventory
Section: Chapter Questions
Problem 15EA: Shetland Company reported net income on the year-end financial statements of $125,000. However,...
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![6. You wil
PROBLEM:
Net income for Victory Company for the years 2021 and 2022 is shown below. An audit of the accounts,
however, disclosed the following errors:
2021
2022
Net income after income tax
246,500 312.500
Understatement of year-end inventory
25.000
Purchase of computer at year cnd charged to expense. The
estimated useful life is 10 years.
40,000
Credit purchases of merchandise not recorded but included in
the physical count at year end
50,000
Rent received in advance and credited to incomne
18.000
Unrecorded unpaid taxes at year-end,
20.000
QUESTIONS:
1. What is the correct net income for the year 2021?
2. What is the correct net income for the year 2022?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6f81ea8-ac17-4e88-8088-6c926550a514%2Fa6a4d226-33a5-4032-874f-4cf9c2aec9cb%2Fmjyzwa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. You wil
PROBLEM:
Net income for Victory Company for the years 2021 and 2022 is shown below. An audit of the accounts,
however, disclosed the following errors:
2021
2022
Net income after income tax
246,500 312.500
Understatement of year-end inventory
25.000
Purchase of computer at year cnd charged to expense. The
estimated useful life is 10 years.
40,000
Credit purchases of merchandise not recorded but included in
the physical count at year end
50,000
Rent received in advance and credited to incomne
18.000
Unrecorded unpaid taxes at year-end,
20.000
QUESTIONS:
1. What is the correct net income for the year 2021?
2. What is the correct net income for the year 2022?
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