Sunland Company has had issues counting its inventory over the last several years. Assuming that the 2022 inventory was correct, the following information was gathered. Year Net Income 2023 $125,800 2024 2025 2026 2027 Prepare a schedule showing the adjusted net income figure for each year after considering the inventory errors. Ignore the effect of income taxes. Year 2023 2024 2025 Error in Inventory Understated by $17,900 $188,000 Understated by $6,000 $146,000 Correct $139,200 Overstated by $13,200 $194,600 Overstated by $8,200 2026 2027 $ Net Income Per Books Add Overstatement Jan. 1 Deduct Understatement Jan.1 Deduct Overstatement Dec. 31 Add Understatement Dec.31 $ $ $ $ $ $ $ Corrected Net Income
Sunland Company has had issues counting its inventory over the last several years. Assuming that the 2022 inventory was correct, the following information was gathered. Year Net Income 2023 $125,800 2024 2025 2026 2027 Prepare a schedule showing the adjusted net income figure for each year after considering the inventory errors. Ignore the effect of income taxes. Year 2023 2024 2025 Error in Inventory Understated by $17,900 $188,000 Understated by $6,000 $146,000 Correct $139,200 Overstated by $13,200 $194,600 Overstated by $8,200 2026 2027 $ Net Income Per Books Add Overstatement Jan. 1 Deduct Understatement Jan.1 Deduct Overstatement Dec. 31 Add Understatement Dec.31 $ $ $ $ $ $ $ Corrected Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Company has had issues counting its inventory over the last several years. Assuming that the 2022 inventory was correct, the following information was gathered.
Year Net Income
Error in Inventory
$125,800
Understated by $17,900
$188,000 Understated by $6,000
$146,000
Correct
$139,200 Overstated by $13,200
$194,600 Overstated by $8,200
2023
2024
2025
2026
2027
Prepare a schedule showing the adjusted net income figure for each year after considering the inventory errors. Ignore the effect of income taxes.
Year
2023
2024
2025
2026
2027
$
Net Income Per Books
Add Overstatement Jan. 1 Deduct Understatement Jan.1 Deduct Overstatement Dec. 31 Add Understatement Dec.31
$
$
$
$
$
$
$
Corrected Net Income
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