The income statement : This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses. To Prepare: The correct income statement for 2016, and 2017.

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Answer 1

Question

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

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FOOD BLON NVASIONTH a) b) A-27 Give journal entries, ledger accounts and Balance Sheets under the following methods of treatment of goodwill:- If goodwill is raised and written off. If goodwill is brought in cash and withdrawn from the business. (B.Com., Osm) (Ans. Balance Sheet total (under both methods of treatment 85,000) 16. C and D carrying on business in partnership and sharing profits 5/8 & 3/8th require a partner when their Balance Sheet stood as follows. Balance Sheet Liabilities Assets Creditors 10,000 Cash Reserve Fund 20,000 Debtors Capitals: Stock C 40,000 Investment D 20,000 60,000 Plant 90,000 2,400 20,000 10,000 7,600 50,000 90,000 They admit E into partnership giving him 1/8th share on the following terms: Stock to be depreciated by 20 per cent, a provision of 5 percent on debtors is to be made for doubtful debts, investments are to be brought in the new firm at an agreed value of 6,000 and Plant to be appreciated by 20 per cent. E brings in 16,000 as his share of…

Answer 2

Question

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

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Answer 3

Question

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

Answer 6

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

Answer 7

Chapter 6, Problem 6.17E

(a)

To determine

The income statement: This is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To Prepare: The correct income statement for 2016, and 2017.

Answer 8

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

Answer 9

(b)

To determine

To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

Answer 10

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

Answer 11

(c)

To determine

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2Q Ch. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...

Solution Summary: The author explains that the correct gross profit of Company S for 2016, and 2017 is 37,000 and 71,000 respectively.

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To Explain: The cumulative effect of the inventory error on total gross profit for the 2 years.

To Write: A letter to the president of Company S regarding the nature of inventory error and its effect on the financial statements.

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