During the taking of its physical inventory on December 31, 20Y3, Corbin Company incorrectly counted its inventory as $135,525 instead of the correct amount of $116,550. Indicate the effect of the misstatement on Corbin's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Cost of goods sold Balance sheet or income statement Overstated, Understated, Or no effect $ Current assets $ Gross profit $ Inventory $ Net income $ Stockholders' equity $ Total assets $
During the taking of its physical inventory on December 31, 20Y3, Corbin Company incorrectly counted its inventory as $135,525 instead of the correct amount of $116,550. Indicate the effect of the misstatement on Corbin's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value. Cost of goods sold Balance sheet or income statement Overstated, Understated, Or no effect $ Current assets $ Gross profit $ Inventory $ Net income $ Stockholders' equity $ Total assets $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Effect of Inventory Errors
During the taking of its physical inventory on December 31, 20Y3, Corbin Company incorrectly counted its inventory as $135,525 instead of the correct amount of $116,550. Indicate the effect of the misstatement on Corbin's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value.
| Cost of goods sold |
Balance sheet or income statement
|
Overstated, Understated, Or no effect | $ |
| Current assets |
|
|
$ |
| Gross profit |
|
|
$ |
| Inventory |
|
|
$ |
| Net income |
|
|
$ |
|
|
|
$ | |
| Total assets |
|
|
$ |
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