An entry to record Purchases and related Accounts Payableof $13,000 for merchandise purchased on December23, 2018, was recorded in January 2019. This merchandisewas not included in inventory at December 31, 2018. Whateffect does this error have on reported net income for2018? What entry should be made to correct for this error,assuming that the books are not closed for 2018?
An entry to record Purchases and related Accounts Payableof $13,000 for merchandise purchased on December23, 2018, was recorded in January 2019. This merchandisewas not included in inventory at December 31, 2018. Whateffect does this error have on reported net income for2018? What entry should be made to correct for this error,assuming that the books are not closed for 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
An entry to record Purchases and related Accounts Payable
of $13,000 for merchandise purchased on December
23, 2018, was recorded in January 2019. This merchandise
was not included in inventory at December 31, 2018. What
effect does this error have on reported net income for
2018? What entry should be made to correct for this error,
assuming that the books are not closed for 2018?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education