Ireland Corporation's ending inventory as of December 31, 2013, was overstated by $14,000. Indicate whether each of the following statements relating to the above error is true or false.
_____ a) Cost of goods sold is overstated in 2013 by $14,000.
_____ b) Net Income is overstated in 2013 by $14,000.
_____ c) Retained Earnings is understated at 12/31/13 by $28,000.
_____ d) Beginning inventory will be understated in 2014 by $14,000.
_____ e) Retained Earnings will not be affected by this error at the end of 2014.

Question

Quizplus · Accepted Answer

The Answer of Ireland Corporation's ending inventory as of December 31, 2013, was overstated by $14,000. Indicate whether each of the following statements relating to the above error is true or false.
_____ a) Cost of goods sold is overstated in 2013 by $14,000.
_____ b) Net Income is overstated in 2013 by $14,000.
_____ c) Retained Earnings is understated at 12/31/13 by $28,000.
_____ d) Beginning inventory will be understated in 2014 by $14,000.
_____ e) Retained Earnings will not be affected by this error at the end of 2014.

Ireland Corporation's Ending Inventory as of December 31, 2013, Was