During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000.
(a) Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.
(b) If uncorrected, what would be the effects of the error on next year's balance sheet and income statement?

Question

Quizplus · Accepted Answer

The Answer of During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000.
(a) Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.
(b) If uncorrected, what would be the effects of the error on next year's balance sheet and income statement?

During the Taking of Its Physical Inventory on December 31