solve correct Shockley Co. reported the following amounts in its financial statements:(a) Cost of goods sold(b) Profita(c) Total current assets(d) EquityIn making the physical counts of inventory, the following errors were made:• Inventory on December 31, 2020: understated $71,000• Inventory on December 31, 2021: overstated $31,000Cost of goods soldReportedAdjustments Dec 31, 2020 errorDec 31, 2021 errorb.Required:For each of the preceding financial statement items-(a). (b), (c), and (d)-prepare a schedule similar to the following and show theadjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a minussign.)CorrectedProfit$Corrected$2020ReportedAdjustments: Dec 31, 2020 errorDec. 31, 2021 errorFinancial Statements forYear Ended December 31.20202021720,000 $ 852,000 $225,000280,0001,165,000 1,275,000 1,110,0001,297,000 1,440,0001,242,000720,000 $$2021852,000 $720,000 $225,000 $225,000 $20222022775,000236,000775,000852,000 $775,000280,000 $ 236,000280,000 $236,000 bC.dCorrectedProfitReportedAdjustments Dec 31, 2020 errorDec 31, 2021 errorCorrectedTotal current assets.ReportedAdjustments Dec 31, 2020 errorDec 31, 2021 errorCorrectedEquityReportedAdjustments: Dec. 31, 2020 errorDec 31, 2021 errorCorrectedSS720,000 $852,000 $225,000 $ 280,000 $775,000236,000225,000 $ 280,000 $ 236,000$ 1,165,000 $1,275,000 $ 1,110,000$ 1,165,000 $ 1,275,000 $ 1,110,000$ 1,297,000 $1,440,000 $ 1,242,000$ 1,297,000 $1,440,000 $ 1,242,000

Name: solve correct Shockley Co. reported the following amounts in its finan
Uploaded: 2024-03-20T06:32:37.000Z
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Description: solve correct Shockley Co. reported the following amounts in its financial statements:(a) Cost of goods sold(b) Profita(c) Total current assets(d) EquityIn making the physical counts of inventory, the following errors were made:• Inventory on Decembe

Adjustment of Inventory :— Inventory Adjustments allow a retailer to change the number of units in…

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Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b) Profit a (c) Total current assets (d) Equity In making the physical counts of inventory, the following errors were made: • Inventory on December 31, 2020: understated $71,000 • Inventory on December 31, 2021: overstated $31,000 Cost of goods sold Reported Adjustments Dec 31, 2020 error Dec 31, 2021 error Corrected Required: For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a min- sign.) b. Profit $ Reported 2020 Financial Statements for Year Ended December 31. 2020 2021 720,000 $ 852,000 $ 225,000 280,000 1,165,000 1,275,000 1,110,000 1,297,000 1,440,000 1,242,000 $ 720,000 $ 2021 852,000 $ 720,000 $ 335.000 e 2022 775,000 2022 775,000 236,000 852,000 $ 775,000 390.000 336.000