Question 5: Vance Company reported net incomes for a three-year period as follows: 2014, $186,000; 2015, $189,000; 2016, $180,000. In reviewing the accounts in 2017 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities: 2014 2015 2016 Overstatement of ending inventory $42,000 $51,000 $24,000 Understatement of accrued advertising expense 6,600 12,000 7,200 Instructions:

Question 5: Vance Company reported net incomes for a three-year period as follows: 2014, $186,000; 2015, $189,000; 2016, $180,000. In reviewing the accounts in 2017 after the books for the prior year have been closed, you find that the following errors have been made in summarizing activities: 2014 2015 2016 Overstatement of ending inventory $42,000 $51,000 $24,000 Understatement of accrued advertising expense 6,600 12,000 7,200 Instructions:

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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