9O00 Required: 1. Subsequent to the 2021 fiscal year end, it became apparent that ending inventory in 2019 was overstated by $270. How will this affect income in 2019 (use - for a decrease)? In 2020? In 2021? 2. Suppose that ending inventory was overstated in 2019 by $270 and by $450 in 2020. How will this affect income in 2019 (use - for a decrease)? In 2020? In 2021? 3. What is the impact of the errors in part 2 on ending retained earnings in 2021 (use - for a decrease). Upon completion, enter the following data here: Overstate in 2019 - income effect 2019: Overstate in 2019 - income effect 2020: Overstate in 2019 - income effect 2021: Overstate in 2019 and 2020- income effect 2019: Overstate in 2019 and 2020- income effect 2020: Overstate in 2019 and 2020- income effect 2021: Overstate in 2019 and 2020- retained earnings effect 2021:

9O00 Required: 1. Subsequent to the 2021 fiscal year end, it became apparent that ending inventory in 2019 was overstated by $270. How will this affect income in 2019 (use - for a decrease)? In 2020? In 2021? 2. Suppose that ending inventory was overstated in 2019 by $270 and by $450 in 2020. How will this affect income in 2019 (use - for a decrease)? In 2020? In 2021? 3. What is the impact of the errors in part 2 on ending retained earnings in 2021 (use - for a decrease). Upon completion, enter the following data here: Overstate in 2019 - income effect 2019: Overstate in 2019 - income effect 2020: Overstate in 2019 - income effect 2021: Overstate in 2019 and 2020- income effect 2019: Overstate in 2019 and 2020- income effect 2020: Overstate in 2019 and 2020- income effect 2021: Overstate in 2019 and 2020- retained earnings effect 2021:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Direction: Choose the correct answer.
Sh21
Whispering 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 net
If beginning inventory is understated by $11800, the effect of this error in the current period is Cost of Goods Sold Net Income Net Income overstated understated understated overstated understated understated overstated overstated
If the ending inventory is overstated in the current year: Net income will be understated in the current year. Next year's beginning inventory will also be overstated. Next year's net income will be overstated. Next year's beginning inventory will be understated.
Help
What is the relationship of inventory at the beginning of year 2022 to net income for the year 2022? a. Direct b. Indirect c. Inverse d. Cannot be determined due to incomplete information
Ending inventory for the year ended December 31, 2017, is understated by $15,000. How will this error affect net income for 2018? Net income will be understated by $30,000. Net income will be understated by $15,000. O Net income will be overstated by $15,000. O Net income will be overstated by $30,000. O The understatement of inventory in 2017 will not affect income in 2018.
1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.
A large decrease in end of year grain inventory from one year to the next mistakenly left off of the 2021 accrual income statement will make 2021 net income appear: a. Lower than it really is b. As a true reflection of 2021 financial performance c. Higher than it really is d. None of the above
None
(b) Your answer is correct. Calculate the days in inventory for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2.) (c) 2020 86.9 days eTextbook and Media 2021 121.7 days 2022 125.9 days Attempts: unlimited Calculate the gross profit rate for 2020, 2021, and 2022. (Round answers to 1 decimal places, e.g. 15.2%.) Gross profit rate eTextbook and Media Save for Later 2020 % 2021 % 2022 Attempts: unlimited Submit Answer