Prior to the books being closed for the 2021 year, the following errors were discovered on the books of Poly Tech Inc: 1. While conducting the inventory count for the year ended November 30, 2021, it was discovered that product was omitted from the November 30, 2020 inventory count. Cost of product omitted from inventory count $ 14,099 Poly Tech has a perpetual inventory system, and all of the product omitted from the November 30, 2020 inventory count was sold in the 2021 year. 2. One of Poly Tech's customers paid money to the company in October 2020. This amount was included in Poly Tech's revenue for the year ended November 30, 2020. However, the product was not shipped to the customer until January 2021.
Correction of Errors
Prior to the books being closed for the 2021 year, the following errors were discovered on the books of Poly Tech Inc:
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1. |
While conducting the inventory count for the year ended November 30, 2021, it was discovered that product was omitted from the November 30, 2020 inventory count. |
Cost of product omitted from inventory count $ 14,099
Poly Tech has a perpetual inventory system, and all of the product omitted from the November 30, 2020 inventory count was sold in the 2021 year.
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2. |
One of Poly Tech's customers paid money to the company in October 2020. This amount was included in Poly Tech's revenue for the year ended November 30, 2020. However, the product was not shipped to the customer until January 2021. |
Amount paid by the customer to Poly Tech $ 12,804
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3. |
During the year ended November 30, 2020, Poly Tech incurred costs to repair some of the company's equipment. These costs were added to the Equipment account in error when they were paid. Consequently, depreciation was calculated on these repair costs for the entire 2020 year. Poly Tech calculates depreciation on its equipment using the straight-line method. |
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Amount incurred for equipment repairs and maintenance |
$ 37,763 |
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Number of years over which equipment is |
9 |
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Required: |
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Prepare any |
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