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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 40
Effect of errors in physical inventory
Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y1, Fonda incorrectly counted its inventory as $337,500 instead of the correct amount of $328,850.
A. State the effects of the error on the December 31, 20Y1, balance sheet of Fonda Motorcycle Shop.
B. State the effects of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20Y1.
C. If uncorrected, what would be the effects of the error on the 20Y2 income statement?
D. If uncorrected, what would be the effects of the error on the December 31, 20Y2, balance sheet?
Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y1, Fonda incorrectly counted its inventory as $337,500 instead of the correct amount of $328,850.
A. State the effects of the error on the December 31, 20Y1, balance sheet of Fonda Motorcycle Shop.
B. State the effects of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 20Y1.
C. If uncorrected, what would be the effects of the error on the 20Y2 income statement?
D. If uncorrected, what would be the effects of the error on the December 31, 20Y2, balance sheet?
Explanation
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Error in inventory is most important to ...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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