For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by selecting the appropriate code letter in the dropdown under each item. Code: O - item is overstated U - item is understated NA item is not affected 1. A physical count of goods on hand at the end of the current year resulted in some goods being counted twice. 2. The ending inventory in the previous period was overstated. Events 3. 4. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31. Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31. 5. The internal auditors discovered that the ending inventory in the previous period was understated $17,000 and that the ending inventory in the current period was overstated $27,000. Items Assets Stockholder's Equity Cost of Goods Sold Net Income xxxxx ..... xxxxx
For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by selecting the appropriate code letter in the dropdown under each item. Code: O - item is overstated U - item is understated NA item is not affected 1. A physical count of goods on hand at the end of the current year resulted in some goods being counted twice. 2. The ending inventory in the previous period was overstated. Events 3. 4. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31. Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31. 5. The internal auditors discovered that the ending inventory in the previous period was understated $17,000 and that the ending inventory in the current period was overstated $27,000. Items Assets Stockholder's Equity Cost of Goods Sold Net Income xxxxx ..... xxxxx
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by selecting the appropriate code letter in the dropdown under each item.
Code: O - item is overstated
U
- item is understated
NA
item is not affected
1. A physical count of goods on hand at the end of the current year resulted in some goods being counted twice.
2. The ending inventory in the previous period was overstated.
Events
3.
4.
Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31.
Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31.
5.
The internal auditors discovered that the ending inventory in the previous period was understated $17,000 and that the ending inventory in the current period was overstated $27,000.
Items
Assets
Stockholder's Equity
Cost of Goods Sold
Net Income
xxxxx
.....
xxxxx
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