Bonita Company understated its 2022 ending inventory by $30,100. Determine the impact this error has on ending inventory, cost of goods sold, and owner’s equity in 2022 and 2023. 2022 2023Ending inventory select an effect OverstatedNo EffectUnderstated select an effect UnderstatedOverstatedNo EffectCost of goods sold select an effect OverstatedNo EffectUnderstated select an effect OverstatedUnderstatedNo EffectOwner’s equity select an effect No EffectOverstatedUnderstated select an effect UnderstatedOverstatedNo Effect

Note: Since ending inventory is understated, cost of goods sold will be overstated automatically and…

Answered: Bonita Company understated its 2022…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 71BPSB

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Bonita Company understated its 2022 ending inventory by $30,100. Determine the impact this error has on ending inventory, cost of goods sold, and owner’s equity in 2022 and 2023.

	2022	2023
Ending inventory	select an effect OverstatedNo EffectUnderstated	select an effect UnderstatedOverstatedNo Effect
Cost of goods sold	select an effect OverstatedNo EffectUnderstated	select an effect OverstatedUnderstatedNo Effect
Owner’s equity	select an effect No EffectOverstatedUnderstated	select an effect UnderstatedOverstatedNo Effect

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