Question 170 / 4.5 ptsShetland Company reported net income on the year-end financial statements of $132,946. However,errors in inventory were discovered after the reportswere issued. If inventory was understated by$12,270, how much net income did the companyactually earn?swered120,676Answer145,216

Step 1: Define what understated inventory meansWhen inventory is understated this means that the…

Answered: Question 17 0 / 4.5 pts Shetland…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 1A physical count of inventory on December 31, 2019 revealed that Grapes Company had inventory on hand at that date with a cost of P5,900,000. The annual examination identified that the following items were excluded from this amount: ➢Merchandise of P390,000 is held by Grapes on consignment.➢Merchandise costing P330,000 was shipped by Grapes FOB Destination to a customer on December 31, 2019. The customer was expected to receive the goods on January 5, 2020. ➢Merchandise costing P460,000 was shipped by Grapes FOB Shipping Point to a customer on December 29, 2019. The customer was expected to receive the goods on January 5, 2020. ➢Merchandise costing P930,000 shipped by a vendor Grapes Destination on December 31, 2019 was received by Grapes on Jan. 5, 2020 .➢Merchandise costing P410,000 purchased FOB Shipping Point was shipped by the supplier on December 31, 2019 and received by Grapes on January 5, 2020. What amount should appear for inventory on December 31, 2019?
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The net income per books of Linda Williams Company was determined without knowledge of the errors indicated below. Net Income Error in Ending Year per Books Inventory 2015 $54,500 Overstated $3,120 2016 56,470 Overstated 8,670 2017 58,270 Understated 10.790 2018 60,150 No error 2019 62,210 Understated 1,940 2020 64,350 Overstated 8,030 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Errors in Inventories Net Income Overstatement Understatement Year Per Books Overstatemer Jan. 1 Jan. 1 Dec. 31 2015 $54,500 $4 $4 %24 2016 56,470 2017 58,270 2018 60,150 2019 62.210 2020 64,350 %24 eTexthook and Media
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5. PE.07-08B H Show Me How eBook Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Tango Company follows: 20Y7 20Y6 Cost of merchandise sold $3,864,000 $4,001,500 Inventories: Beginning of year 770,000 740,000 End of year ৪40,000 770,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. Inventory Turnover 20Y7 20Y6 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Y7 days 20Y6 days c. Does the change in inventory turnover and the days' sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
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Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3 The following is information for Palmer Company. Year 3 $ 613,825 99,400 Cost of goods sold Ending inventory Year 2 $ 396,650 89,750 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Inventory turnover Days' sales in inventory Year 1 $361,300 94,500 Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Numerator / Denominator Inventory turnover Days' sales in inventory Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator / Denominator Ratio < Prev 0 0 4 of 9 # Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from…
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QUESTION 25 Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820, but a physical count reveals that only $90,450 of inventory exists. The adjusting entry to record this $1,370 of inventory shrinkage is: Account Title Debit Credit Cost of Goods Sold 90,450 Merchandise Inventory 90,450 Account Title Debit Credit Inventory Shrinkage Expense 1,370 Cost of Goods Sold 1,370 Account Title Debit Credit Purchases Discounts 1,370 Cost of Goods Sold 1,370
Exercise 5-17 (Algo) Analyzing inventory errors LO A2 Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $525,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $230,000 rather than the correct $250,000. 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2. and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 2 Sales Cost of goods sold Beginning inventory Cost of purchases Cost of goods sold Gross…

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