Shockley Co. reported the following amounts in its financial statements:(a) Cost of goods sold(b) Profit(c) Total current assets(d) Equitya.Cost of goods sold:ReportedAdjustments: Dec. 31, 2020 errorDec. 31, 2021 errorIn making the physical counts of inventory, the following errors were made:• Inventory on December 31, 2020: understated $80,000• Inventory on December 31, 2021: overstated $22,000Correctedb. Profit:Required:For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show theadjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a minsign.)ReportedAdiustments: Dec. 31. 2020 error$$$$2020Financial Statements forYear Ended December 31.2022820,000281,00020202021765,000 $ 897,000 $270,000 325,0001,255,000 1,365,0001,387,000 1,530,000270,000 $80.000120211,200,0001,332,0002022765,000 $ 897,000 $ 820,000(80,000)80,00022,000685,000 $ 999,000 $(22,000)798,000325,000 $ 281,000(80.000)Numbers

Name: Shockley Co. reported the following amounts in its financial statemen
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Description: Shockley Co. reported the following amounts in its financial statements:(a) Cost of goods sold(b) Profit(c) Total current assets(d) Equitya.Cost of goods sold:ReportedAdjustments: Dec. 31, 2020 errorDec. 31, 2021 errorIn making the physical counts o

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Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit (c) Total current assets (d) Equity Financial Statements for Year Ended December 31. 2022 2020 2021 $ 765,000 $897,000 $ 820,000 270,000 1,255,000 1,387,000 325,000 281,000 1,365,000 1,200,000 1,530,000 1,332,000 In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $80,000 • Inventory on December 31, 2021: overstated $22,000 .

Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit (c) Total current assets (d) Equity Financial Statements for Year Ended December 31. 2022 2020 2021 $ 765,000 $897,000 $ 820,000 270,000 1,255,000 1,387,000 325,000 281,000 1,365,000 1,200,000 1,530,000 1,332,000 In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $80,000 • Inventory on December 31, 2021: overstated $22,000 .

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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