During the taking of its physical inventory on December 31, 20Y3, Zula Company incorrectly counted its inventory as $116,985 instead of the correct amount of $131,025. Indicate the effect of the misstatement on Zula's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Line Item Description Financial Statement Understated or Overstated Amount Current assets $fill in the blank 3 Gross profit $fill in the blank 6 Inventory $fill in the blank 9 Net income $fill in the blank 12 Stockholders' equity $fill in the blank 15 Total assets $fill in the blank 18
During the taking of its physical inventory on December 31, 20Y3, Zula Company incorrectly counted its inventory as $116,985 instead of the correct amount of $131,025. Indicate the effect of the misstatement on Zula's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Line Item Description Financial Statement Understated or Overstated Amount Current assets $fill in the blank 3 Gross profit $fill in the blank 6 Inventory $fill in the blank 9 Net income $fill in the blank 12 Stockholders' equity $fill in the blank 15 Total assets $fill in the blank 18
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
During the taking of its physical inventory on December 31, 20Y3, Zula Company incorrectly counted its inventory as $116,985 instead of the correct amount of $131,025. Indicate the effect of the misstatement on Zula's December 31, 20Y3,
| Line Item Description | Financial Statement | Understated or Overstated | Amount |
|---|---|---|---|
| Current assets |
|
|
$fill in the blank 3 |
| Gross profit |
|
|
$fill in the blank 6 |
| Inventory |
|
|
$fill in the blank 9 |
| Net income |
|
|
$fill in the blank 12 |
|
|
|
$fill in the blank 15 | |
| Total assets |
|
|
$fill in the blank 18 |
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