The net income per books of Kimberly Young Company was determined without knowledge of the errors indicated below. Year Net Income per Books Error in Ending Inventory 2015 $49,000 Overstated $ 2,700 2016 51,060 Overstated 8,370 2017 53,170 Understated 11,680 2018 55,090 No error 2019 56,960 Understated 1,890 2020 58,850 Overstated 8,620 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. Net Income Per Books Overstatement Jan. 1 Understatement Jan. 1 Overstatement Dec. 31 Understatement Dec. 31 Corrected Net Income 2015 $49,000 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount 2016 51,060 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 2017 53,170 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 2018 55,090 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 2019 56,960 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 2020 58,850 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount

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 net income per books of Kimberly Young Company was determined without knowledge of the errors indicated below.

Year	Net Income per Books		Error in Ending Inventory
2015		$49,000		Overstated	$ 2,700
2016		51,060		Overstated	8,370
2017		53,170		Understated	11,680
2018		55,090		No error
2019		56,960		Understated	1,890
2020		58,850		Overstated	8,620

Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.

Net Income Per Books	Overstatement Jan. 1	Understatement Jan. 1	Overstatement Dec. 31	Understatement Dec. 31	Corrected Net Income
2015	$49,000	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
2016	51,060	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
2017	53,170	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
2018	55,090	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
2019	56,960	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
2020	58,850	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
	$enter a total amount

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