Inventory Errors Assume that in year 1, the ending merchandise inventory is overstated by $50,000. If this is the only error in years 1 and 2, indicate which items will be understated, overstated, or correctly stated for years 1 and 2. Year 1 Year 2 Ending merchandise inventory Beginning merchandise inventory Cost of goods sold Gross profit Net income Ending owner's capital
Inventory Errors Assume that in year 1, the ending merchandise inventory is overstated by $50,000. If this is the only error in years 1 and 2, indicate which items will be understated, overstated, or correctly stated for years 1 and 2. Year 1 Year 2 Ending merchandise inventory Beginning merchandise inventory Cost of goods sold Gross profit Net income Ending owner's capital
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 28CE: Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020....
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Inventory Errors
Assume that in year 1, the ending merchandise inventory is overstated by $50,000. If this is the only error in years 1 and 2, indicate which items will be understated, overstated, or correctly stated for years 1 and 2.
Year 1 | Year 2 | |
Ending merchandise inventory |
|
|
Beginning merchandise inventory |
|
|
Cost of goods sold |
|
|
Gross profit |
|
|
Net income |
|
|
Ending owner's capital |
|
|
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