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Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements presented below for 2023 and 2022. Sales revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Ending inventory Gross margin Operating expenses Income before taxes $39,300 343,200 382,500 (46,800) 2023 $538,200 335,700 $202,500 (167,200) $35,300 2022 $32,100 292,700 324,800 (39,300) 2022 2022 $483,700 During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: 285,500 $198,200 (151,600) $46,600 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023

Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements presented below for 2023 and 2022. Sales revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Ending inventory Gross margin Operating expenses Income before taxes $39,300 343,200 382,500 (46,800) 2023 $538,200 335,700 $202,500 (167,200) $35,300 2022 $32,100 292,700 324,800 (39,300) 2022 2022 $483,700 During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: 285,500 $198,200 (151,600) $46,600 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023

FINANCIAL ACCOUNTING
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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Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements presented below for 2023 and 2022. Sales revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Ending inventory Gross margin Operating expenses Income before taxes $39,300 343,200 382,500 (46,800) 2023 $538,200 335,700 $202,500 (167,200) $35,300 2022 $32,100 292,700 324,800 (39,300) 2022 2022 $483,700 During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: 285,500 $198,200 (151,600) $46,600 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023
Transcribed Image Text:Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements presented below for 2023 and 2022. Sales revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Ending inventory Gross margin Operating expenses Income before taxes $39,300 343,200 382,500 (46,800) 2023 $538,200 335,700 $202,500 (167,200) $35,300 2022 $32,100 292,700 324,800 (39,300) 2022 2022 $483,700 During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: 285,500 $198,200 (151,600) $46,600 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023
Gross margin Operating expenses Income before taxes During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: Cost of goods sold: 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023 Gross margin Cost of goods sold: Gross margin 2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item (ignore the effect t 0000 Waymire Company Financial Statement For 2022 and 2023 2022 Beginning inventory Ending inventory Q000 0000 Stockholders' equity Cost of goods sold Gross margin Income before taxes $202,500 (167,200) $35,300 0000 2023 2022 0000 $198,200 (151,600) $46,600 2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item (ignore the effect o income taxes). Use a minus sign (-) to indicate if an error is an understatement. If no entry is required, leave the amount box blank. 2022
Transcribed Image Text:Gross margin Operating expenses Income before taxes During 2024, Waymire's accountant discovered that ending inventory for 2022 had been understated by $6,500. Required: Cost of goods sold: 1. Prepare corrected income statements for 2023 and 2022. Use the minus sign for negative values. Waymire Company Income Statement For 2023 and 2022 2023 2023 Gross margin Cost of goods sold: Gross margin 2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item (ignore the effect t 0000 Waymire Company Financial Statement For 2022 and 2023 2022 Beginning inventory Ending inventory Q000 0000 Stockholders' equity Cost of goods sold Gross margin Income before taxes $202,500 (167,200) $35,300 0000 2023 2022 0000 $198,200 (151,600) $46,600 2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item (ignore the effect o income taxes). Use a minus sign (-) to indicate if an error is an understatement. If no entry is required, leave the amount box blank. 2022
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