The net income per books of Linda Williams Company was determined without knowledge of the errors indicated below. Net Income Error in Ending Year per Books Inventory 2015 $54,500 Overstated $3,120 2016 56,470 Overstated 8,670 2017 58,270 Understated 10,790 2018 60,150 No error 2019 62,210 Understated 1,940 2020 64,350 Overstated 8,030 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Errors in Inventories Net Income Overstatement Understatement Year Per Book Overstatemer Jan. 1 Jan. 1 Dec. 31 2015 $54,500 2$ %24 2016 56,470 2017 58,270 2018 60.150 2019 62,210 2020 64,350
The net income per books of Linda Williams Company was determined without knowledge of the errors indicated below. Net Income Error in Ending Year per Books Inventory 2015 $54,500 Overstated $3,120 2016 56,470 Overstated 8,670 2017 58,270 Understated 10,790 2018 60,150 No error 2019 62,210 Understated 1,940 2020 64,350 Overstated 8,030 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Errors in Inventories Net Income Overstatement Understatement Year Per Book Overstatemer Jan. 1 Jan. 1 Dec. 31 2015 $54,500 2$ %24 2016 56,470 2017 58,270 2018 60.150 2019 62,210 2020 64,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The net income per books of Linda Williams Company was determined without knowledge of the errors indicated below.
Net Income
Error in Ending
Year
per Books
Inventory
2015
$54,500
Overstated
$3,120
2016
56,470
Overstated
8,670
2017
58,270
Understated
10.790
2018
60,150
No error
2019
62,210
Understated
1,940
2020
64,350
Overstated
8,030
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
Errors in Inventories
Net Income
Overstatement
Understatement
Year
Per Books
Overstatemer
Jan. 1
Jan. 1
Dec. 31
2015
$54,500
$4
$4
%24
2016
56,470
2017
58,270
2018
60,150
2019
62.210
2020
64,350
%24
eTexthook and Media](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb1ff74-656a-48d4-946d-440c26f1021c%2Fcf2ab62c-2439-49d5-988c-a9dc78cb25ab%2F3lv9lmm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The net income per books of Linda Williams Company was determined without knowledge of the errors indicated below.
Net Income
Error in Ending
Year
per Books
Inventory
2015
$54,500
Overstated
$3,120
2016
56,470
Overstated
8,670
2017
58,270
Understated
10.790
2018
60,150
No error
2019
62,210
Understated
1,940
2020
64,350
Overstated
8,030
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
Errors in Inventories
Net Income
Overstatement
Understatement
Year
Per Books
Overstatemer
Jan. 1
Jan. 1
Dec. 31
2015
$54,500
$4
$4
%24
2016
56,470
2017
58,270
2018
60,150
2019
62.210
2020
64,350
%24
eTexthook and Media
![Net Income
Error in Ending
Year
per Books
Inventory
2015
$54,500
Overstated
$3,120
2016
56,470
Overstated
8,670
2017
58,270
Understated
10,790
2018
60,150
No error
2019
62,210
Understated
1,940
2020
64,350
Overstated
8,030
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
Errors in Inventories
Understatement
Overstatement
Understatement
Corrected Net
Jan. 1
Dec. 31
Dec. 31
Income
24
eTextbook and Media](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bb1ff74-656a-48d4-946d-440c26f1021c%2Fcf2ab62c-2439-49d5-988c-a9dc78cb25ab%2Fat9jwt2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Net Income
Error in Ending
Year
per Books
Inventory
2015
$54,500
Overstated
$3,120
2016
56,470
Overstated
8,670
2017
58,270
Understated
10,790
2018
60,150
No error
2019
62,210
Understated
1,940
2020
64,350
Overstated
8,030
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
Errors in Inventories
Understatement
Overstatement
Understatement
Corrected Net
Jan. 1
Dec. 31
Dec. 31
Income
24
eTextbook and Media
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