Pharoah Company has a July 31 fiscal year end and uses a perpetual inventory system. The records of Pharoah Company show the following data: Income statement: Sales Cost of goods sold Operating expenses Balance sheet: Merchandise inventory 1. 2. 2024 (a) $360,000 255,000 70,000 52,000 2023 $335,000 241,000 After its July 31, 2024, year end, Pharoah discovered two errors: 70,000 45,000 2022 $360,000 276,000 70,000 35,000 At July 31, 2023, Pharoah had $10,000 of goods held on consignment at another company that were not included in the physical count. In July 2023, Pharoah recorded a $15,000 inventory purchase on account that should have been recorded in August 2023. Prepare corrected income statements for Pharoah for the years ended July 31, 2022, 2023, and 2024.
Pharoah Company has a July 31 fiscal year end and uses a perpetual inventory system. The records of Pharoah Company show the following data: Income statement: Sales Cost of goods sold Operating expenses Balance sheet: Merchandise inventory 1. 2. 2024 (a) $360,000 255,000 70,000 52,000 2023 $335,000 241,000 After its July 31, 2024, year end, Pharoah discovered two errors: 70,000 45,000 2022 $360,000 276,000 70,000 35,000 At July 31, 2023, Pharoah had $10,000 of goods held on consignment at another company that were not included in the physical count. In July 2023, Pharoah recorded a $15,000 inventory purchase on account that should have been recorded in August 2023. Prepare corrected income statements for Pharoah for the years ended July 31, 2022, 2023, and 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
A
Don't upload image please
Transcribed Image Text:Pharoah Company has a July 31 fiscal year end and uses a perpetual inventory system. The records of Pharoah Company show the
following data:
Income statement:
Sales
Cost of goods sold
Operating expenses
Balance sheet:
Merchandise inventory
1.
2.
2024
(a)
$360,000
255,000
70,000
52,000
2023
$335,000
241,000
After its July 31, 2024, year end, Pharoah discovered two errors:
70,000
45,000
2022
$360,000
276,000
70,000
35,000
At July 31, 2023, Pharoah had $10,000 of goods held on consignment at another company that were not included in the
physical count.
In July 2023, Pharoah recorded a $15,000 inventory purchase on account that should have been recorded in August 2023.
Prepare corrected income statements for Pharoah for the years ended July 31, 2022, 2023, and 2024.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education