After issuing its financial statements, a company discovered that its beginning inventory was overstated by $280,000. Its tax rate is 25%. As a result of this error, net income was:   Multiple Choice   Understated by $70,000.   Understated by $210,000.   Overstated by $210,000.

Q: JYD Corporation has determined its 2019 and 2020 net income figures to be P1,150,000 and P1,100,000,…

A: After audit, corrections are made to ascertain the correct profit for the period During audit if…

Q: Chavez Wholesale Inc. changed its method of valuing inventory from the average cost method to the…

A: To generate a journal entry, you enter transaction records into your company's books. Your journal…

Q: Sheffield Inc. reported total assets of $6407000 and net income of $505000 for the current year.…

A: Total assets:- Total assets are defined as the assets which includes all the assets or items of…

Q: A company’s beginning inventory for 2005 was overstated by $37,000, and the endinginventory for 2005…

A: The error in valuation of begining Inventory of 2005 will not be having an effect on net income of…

Q: The draft accounts of Collister Co. for the year ended 31st Dec 2020 include  the following: Revenue…

A: Cost of goods sold = Beginning inventory + purchases - ending inventory Gross profit = Sales - COGS

Q: JYD Corporation has determined its 2019 and 2020 net income figures to be $1,150,000 and $1,100,000,…

A: Error and correction:   Error and financial statements include mistakes regarding mathematical,…

Q: During its first and second years of operations, Explorer Company, a corporation using a periodic…

A: Inventory is one of the current asset of the business, which is reported in the balance sheet of the…

Q: Over a four-year period, Jackie Corporation reported the following series of gross profits.…

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: The before-tax income for Lonnie Holdiman Co. for 2020 was $101,000 and $77,400 for 2021. However,…

A: Prepare a schedule showing the determination of corrected income before taxes for 2020:

Q: Makisig company which uses the periodic system of recording inventory reported a net income of…

A: Formula: Net income = Sales - ( Beginning inventory + Purchases - Ending inventory ) Computation of…

Q: The unadjusted income statement of Astra Zenica Co. shows a net income of P125,000 for the year…

A: The income of a company could sometimes be misstated due to the incorrect recognition of revenues or…

Q: Speaker Company has determined its 2014 and 2015 net income figures to be P1,150,000 and P1,100,000,…

A: Corrected Net Income for the year 2015:   Particulars…

Q: Megall Company began operations on Jan. 1, YR1. For tax purposes, Megall has always used FIFO method…

A: In the context of the given question, we are required to prepare journal entries and comment on the…

Q: Vaughn Manufacturing had January 1 inventory of $300000 when it adopted dollar-value LIFO. During…

A: Dollar Value LIFO :           Inventory valuation is important for accurate cost of goods sold which…

Q: In March 2018, Blue Devil Company realized that they had overstated their December 2016 ending…

A: Inventory: Inventory are raw materials, work-in-process, finished goods and other stocks. The stock…

Q: After the auditors counted the inventory of Cracker Jack Manufacturing Co. and reviewed the…

A: Ending inventory is the stock of unfinished and semi-finished material of the company at the end of…

Q: The Relief Goods Corp. reported profit before taxes of ₱370,000 for 2019 and ₱526,000 for 2020. A…

A: Merchandising inventory is the closing inventory of the company held by the firm at the end of the…

Q: Which of the following is correct when, in the same year, beginning inventory is overstated by…

A: The net income is calculated as difference between sales and total costs. Gross profit = Sales -…

Q: Wikki Inc. had the following transactions for the current year with respect to its inventory:

A: Unrealized holding gain is that results from holding on to an investment. It does not realize the…

Q: For the quarter ended September 30, the amount of net income that Rouge should report is

A: Given information is: Rouge Company’s $264,000 net income for the quarter ended September 30…

Q: At year-end, Delectable Company experienced a storm surge which caused severe damage to the entire…

A: Formula: Cost of good sold = Net Sales - Gross profit.

Q: Concord Corporation had January 1 inventory of $305000 when it adopted dollar-value LIFO. During the…

A: Gross profit measures the direct profit of the business. it is the difference between the net sales…

Q: SABM Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than…

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Vader Corporation made two errors in counting inventory: Ending inventory for 2019 was overstated by…

A: The beginning inventory of 2020 is overstated by $15,000. This will result in an understated net…

Q: In its year 3 financial statements, what amount should Mayorca report as the gain or loss on the…

A: Weighted average balance = ending - beginning  = 83000-77000 =6000

Q: Waterway Industries had January 1 inventory of $310000 when it adopted dollar-value LIFO. During the…

A: LIFO- It is a method of valuation of inventory which calculate the inventory cost on the basis of…

Q: During 2011, Paul discovered that the ending inventories reported on its financial statements were…

A: Inventories are very important part of accounting. Inventories set a base for any firm in various…

Q: Ebbers Corporation overstated its ending inventory balance by $15,000 in the current year. What…

A:

Q: At the beginning of the year, Sheffield had an inventory of $350000. During the year, the company…

A: Formula: Cost of Goods sold = Beginning inventory + Purchases - Ending inventory Gross Profit rate =…

Q: The condensed statement of income of LUNA, Inc. for the year ended December 31, 2020 is presented…

A: Adjusting entries journal entries that are passed at the conclusion of a financial year in order to…

Q: During Year 2, Orca Corp. decided to change from the FIFO method of inventory valuation to the…

A: As change from the FIFO method of inventory valuation to the weighted-average method will be define…

Q: The before-tax income for Blossom Co. for 2020 was $98,000 and $80,800 for 2021. However, the…

A:

Q: Sheffield Company had the following information taken from its2009 adjusted trial balance: Sales,…

A: 400,000 sales -12,000 discounts= net sales of 388,000 388,000-195,000 cogs = gross margin 193,000…

Q: Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some…

A: Tax saved on understated inventory = understated inventory x tax rate = 600000 x 25% = $150,000

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A: 1.

Q: ing 2021, Gamma Ltd discovered that some of their products sold during ember 2020 at R6 500. Assume…

A: Financial statements refers to the written documents of a company that reflects the financial…

Q: Hull Company reported the following income statement information for the current year:…

A: Correct Gross Profit = Gross Profit -  Ending Inventory Overstated Value

Q: On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account…

A: To calculate the net income to be reported in 2011 after change of inventory valuation method from…

Q: Vaughn Inc. reported total assets of $6407000 and net income of $505000 for the current year. Vaughn…

A:

Q: Zaheer Abbas, an auditor with Saeed CPAs, is performing a review of K Company’s inventory account. K…

A: Inventory:  Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: AFW inc. reported these figures for its fiscal year (amounts in millions): Net sales $2,100 Cost of…

A: If the Ending Inventory is overstated therefore Cost of Goods Sold is Understated. Cost Of Goods…

Q: Help

A:

Q: Clover Company, a corporation using a periodic inventory system, made undiscovered errors in taking…

A: Basic Accounting Concept Note for this question: Overstatement of Ending or Closing Inventory leads…

Q: Year ended Net Income  Using Average cost Net Income Using FIFO After Tax   Difference  After…

A: Journal entry is an act of recording transaction of business in the books of accounts. It is…

Q: retorn Company began operations in 2018. During the first two years of operations, Tretorn made…

A: Solution 2: reported income for the year 2018 = Understated by 40000 as ending inventory is…

Q: During 2011 Evelyn Co. Ltd discovered that certain items had been included in inventory at 31…

A: Income statement is the statement showing the profit and loss of the company by subtracting the…