MP3Juices Free M... Microsoft Word Onl... Mail - freya.zamora... d SEASON 1 - EP 1-.. Other be Caloulator Effect of Errors in Physical Inventory Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as S718,910 instead of the corred amount of $740,480. Enter all amounts as posiuve numbers. 2. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Understated 21,570 Current Assets Understated 21,570 Total Assets Understated 21,570 Owner's Equity Understated 21,570 b. State the effect of the error on the inoome statement of Missouri River Supply for the year ended December 31, 20Y2. Income Stetement Items Overstated/Understated Amount Cost of Merchandise Sold Overstated 21,570 Gross Profit Understated 21,570 Net Income Understated 21,570 C If uncorected, whal would be the effect of the error on Uhe 20Y3 incorne slatemernt? Income Statement Items Overstated/Understated Amount Understated 21,570 Gruss Profit 21,570 Overstated 21,570 3. The December 31, 20Y0, balance shect would be incorrect, simo- the 20Y2 nwntory arrur understates he begiming ventory n 201 Previous Next Ernail Inasructbr Submit Assignnet br Grad 44 4:25 PM ENG W e 4/13/202 rch hp
MP3Juices Free M... Microsoft Word Onl... Mail - freya.zamora... d SEASON 1 - EP 1-.. Other be Caloulator Effect of Errors in Physical Inventory Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as S718,910 instead of the corred amount of $740,480. Enter all amounts as posiuve numbers. 2. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Understated 21,570 Current Assets Understated 21,570 Total Assets Understated 21,570 Owner's Equity Understated 21,570 b. State the effect of the error on the inoome statement of Missouri River Supply for the year ended December 31, 20Y2. Income Stetement Items Overstated/Understated Amount Cost of Merchandise Sold Overstated 21,570 Gross Profit Understated 21,570 Net Income Understated 21,570 C If uncorected, whal would be the effect of the error on Uhe 20Y3 incorne slatemernt? Income Statement Items Overstated/Understated Amount Understated 21,570 Gruss Profit 21,570 Overstated 21,570 3. The December 31, 20Y0, balance shect would be incorrect, simo- the 20Y2 nwntory arrur understates he begiming ventory n 201 Previous Next Ernail Inasructbr Submit Assignnet br Grad 44 4:25 PM ENG W e 4/13/202 rch hp
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can someone help double check my answers?
Transcribed Image Text:MP3Juices
Free M...
Microsoft Word Onl...
Mail - freya.zamora...
d SEASON 1 - EP 1-..
Other be
Caloulator
Effect of Errors in Physical Inventory
Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as S718,910 instead of the corred amount of
$740,480.
Enter all amounts as posiuve numbers.
2. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply.
Balance Sheet Items
Understated/Overstated
Amount
Merchandise Inventory
Understated
21,570
Current Assets
Understated
21,570
Total Assets
Understated
21,570
Owner's Equity
Understated
21,570
b. State the effect of the error on the inoome statement of Missouri River Supply for the year ended December 31, 20Y2.
Income Stetement Items
Overstated/Understated
Amount
Cost of Merchandise Sold
Overstated
21,570
Gross Profit
Understated
21,570
Net Income
Understated
21,570
C If uncorected, whal would be the effect of the error on Uhe 20Y3 incorne slatemernt?
Income Statement Items
Overstated/Understated
Amount
Understated
21,570
Gruss Profit
21,570
Overstated
21,570
3. The December 31, 20Y0, balance shect would be incorrect, simo- the 20Y2 nwntory arrur understates he begiming ventory n 201
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Ernail Inasructbr
Submit Assignnet br Grad
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4:25 PM
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W e
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hp
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