**Oriole Company Income Statement Data for 2-Year Period****Original Data:**| Year | 2019 | 2020 ||------|------------|------------|| Sales revenue | $211,500 | $251,000 || Cost of goods sold | | || Beginning inventory | 34,000 | 44,000 || Cost of goods purchased | 180,500 | 216,500 || Cost of goods available for sale | 214,500 | 260,500 || Ending inventory | 44,000 | 55,000 || Cost of goods sold | 170,500 | 205,500 || Gross profit | $41,000 | $45,500 |**Additional Information:**Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated by $6,000.---**Adjusted Income Statement Data:**Prepare correct income statement data for the 2 years.| Year | 2019 | 2020 ||------|--------------|--------------|| Sales | $ | $ || Cost of goods sold | $ | $ || Beginning inventory | $ | $ || Cost of goods purchased | $ | $ || Cost of goods available for sale | $ | $ || Ending inventory | $ | $ || Cost of goods sold | $ | $ || Gross profit | $ | $ |---To properly adjust the ending inventory, you need to revise the ending inventory for 2019 by reducing it by $6,000 and then reflect the result in the subsequent calculations for the cost of goods sold and gross profit for both years. This adjustment ensures accurate financial reporting and reflects the actual physical count of the inventory. Note: Please enter the recalculated amounts based on the given adjustments.

Income statement is a statement showing the revenues and related expenses calculated to arrive at…

Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500 $251,000 Sales revenue Cost of goods sold Beginning inventory 34,000 44,000 Cost of goods purchased 180,500 216,500 Cost of goods available for sale 214,500 260,500 Ending inventory 44,000 55,000 Cost of goods sold 170,500 205,500 Gross profit $41,000 $45,500 Oriole uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was overstated $6,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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