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The following information is presented for Marigold Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year   Net Income per Books   Error in Ending Inventory 2017   $ 180,000   Overstated   $ 23,000 2018   93,000   Overstated   35,000 2019   108,000   No error   - 2020   218,000   Understated   6,200 2021   97,000   Understated   19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory

The following information is presented for Marigold Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year   Net Income per Books   Error in Ending Inventory 2017   $ 180,000   Overstated   $ 23,000 2018   93,000   Overstated   35,000 2019   108,000   No error   - 2020   218,000   Understated   6,200 2021   97,000   Understated   19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory

FINANCIAL ACCOUNTING
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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The following information is presented for Marigold Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory.

Year
  
Net Income
per Books
  
Error in Ending
Inventory
2017   $ 180,000   Overstated   $ 23,000
2018   93,000   Overstated   35,000
2019   108,000   No error   -
2020   218,000   Understated   6,200
2021   97,000   Understated   19,500


Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory

Errors in Inventories Net Income Overstatement Understatement Overstatement Year Per Books Jan. 1 Jan. 1 Dec. 31 2017 $ 180,000 $ 2018 93,000 2019 108,000 2020 218,000 2021 97,000 $ %24 %24 %24
Transcribed Image Text:Errors in Inventories Net Income Overstatement Understatement Overstatement Year Per Books Jan. 1 Jan. 1 Dec. 31 2017 $ 180,000 $ 2018 93,000 2019 108,000 2020 218,000 2021 97,000 $ %24 %24 %24
Errors in Inventories Understatement Overstatement Understatement Corrected Net Jan. 1 Dec. 31 Dec. 31 Income $4 %24 %24 %24 %24
Transcribed Image Text:Errors in Inventories Understatement Overstatement Understatement Corrected Net Jan. 1 Dec. 31 Dec. 31 Income $4 %24 %24 %24 %24
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