HW #6-Chapter 6eBookEffect of Errors in Physical InventoryMadison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted itsinventory as $545,000 instead of the correct amount of $555,400.a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply.Balance Sheet ItemsUnderstated / OverstatedAmountInventoryUnderstated vCurrent AssetsUnderstated vTotal AssetsUnderstated vStockholders' EquityUnderstated vb. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8.Income Statement ItemsOverstated/ UnderstatedAmountCost of Goods SoldOverstatedvGross ProfitUnderstated vNet IncomeUnderstated vC. If uncorrected, what wwould be the effects of the error on the 20Y9 income statement?Overstated / UnderstatedAmountIncome Statement ItemsUnderstated vCost of Goods SoldOverstatedGross ProfitPrevicusTA%24%24 eBookMadison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted itsinventory as $545,000 instead of the correct amount of $555,400.a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply.Balance Sheet ItemsUnderstated / OverstatedAmountInventoryUnderstated vCurrent AssetsUnderstated vTotal AssetsUnderstated vStockholders' EquityUnderstatedb. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8.Income Statement ItemsOverstated/ UnderstatedAmóuntCost of Goods SoldOverstatedvGross ProfitUnderstated vUnderstatedNet IncomeC. If uncorrected, what would be the effects of the error on the 20Y9 income statement?AmountOverstated/ UnderstatedIncome Statement ItemsUnderstated vCost of Goods SoldOverstatedVGross ProfitOverstatedvNet IncomePrevious%24%24%24

Introduction: Under stated: When the amount shown in books less than the actual value called as…

Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. Balance Sheet Items Understated / Overstated Amount Inventory Understated v Current Assets Understated v Total Assets Understated v Stockholders' Equity Understated v b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8. Income Statement Items Overstated / Understated Amount Cost of Goods Sold Overstated Gross Profit Understated v Understated v Net Income C. If uncorrected, what would be the effects of the error on the 20Y9 income statement? Overstated / Understated Amount Income Statement Items UnderstatedV Cost of Goods Sold Overstated v Gross Profit Overstatedv Net Income

Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. Balance Sheet Items Understated / Overstated Amount Inventory Understated v Current Assets Understated v Total Assets Understated v Stockholders' Equity Understated v b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8. Income Statement Items Overstated / Understated Amount Cost of Goods Sold Overstated Gross Profit Understated v Understated v Net Income C. If uncorrected, what would be the effects of the error on the 20Y9 income statement? Overstated / Understated Amount Income Statement Items UnderstatedV Cost of Goods Sold Overstated v Gross Profit Overstatedv Net Income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
Please dont provide solution image based thanx
Please do not give solution in image format thanku
During 2012 the following selected transactions affecting shareholders' equity occurred for Italy Company Ltd: Invited applications for 25 000 company shares. The shares were to be issued at $60 per share, payable $20 on application and $30 on allotment and $10 on call By 25 February, applications for 26 000 shares had been received. 1 Feb: Directors resolved to allot the shares, with excess application money to be 5 Mar: applied to allotment. 31 Allotment monies were received in full. Mar: 25 Directors make a call on shareholders for the remaining $10. Apr: 30 Calls are received from all shareholders May: Directors declare a dividend of $1 per share, to shareholders of record on 1 July: 1 August, payable on 1 September. Required: Give the journal entries for each of the transactions.
Current Attempt in Progress Waterway Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Item Cameras: Minolta Canon Light Meters: Vivitar Kodak Units Cost per Unit 8 10 20 15 The ending inventory $163 $ 154 121 120 Net Realizable Value per Unit $155 156 110 What amount should be reported for inventory on Waterway Frame Camera Shop's balance sheet, assuming the lower-of-cost-or-net realizable value rule is applied? 135
Please do not give solution in image format thanku
Do not give answer in image and hand writing
Don't provide answers in image format
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Please do not give solution in image format thank you
Please do not give solution in image format thanku