For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. Note: Amounts to be deducted must be entered with a minus sign.
For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. Note: Amounts to be deducted must be entered with a minus sign.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 21GI: Indicate the effect of each of the following errors on the following balance sheet and income...
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![1
Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts
of inventory, it had made the following errors: Year 1 ending inventory is understated by $68,000 and Year 2 ending inventory is
overstated by $38,000.
ok
ces
For Year Ended December 31
(a) Cost of goods sold
(b) Net income
(c) Total current assets
(d) Total equity
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Year 1
$ 743,000
286,000
1,265,000
Year 2
$ 973,000
293,000
1,378,000
1,405,000 1,598,000
Cost of goods sold:
Reported amount
Adjustment for 12/31/Year 1 error
Adjustment for 12/31/Year 2 error
Corrected amount
For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to
correct the reported amounts.
Note: Amounts to be deducted must be entered with a minus sign.
Net income:
Reported amount
Adjustment for 12/31/Year 1 error
Adjustment for 12/31/Year 2 error
Corrected amount
Total current assets:
Reported amount
Adjustment for 12/31/Year 1 error
A discutut for 41№-------
Year 3
$ 808,000
268,000
1,248,000
1,263,000
Year 1
Year 2
Year 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09046587-021c-4b5a-92d0-9fb3f0c2b35d%2F508cdfd9-3a67-48fa-be0e-c838377e666a%2F44s315i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts
of inventory, it had made the following errors: Year 1 ending inventory is understated by $68,000 and Year 2 ending inventory is
overstated by $38,000.
ok
ces
For Year Ended December 31
(a) Cost of goods sold
(b) Net income
(c) Total current assets
(d) Total equity
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Year 1
$ 743,000
286,000
1,265,000
Year 2
$ 973,000
293,000
1,378,000
1,405,000 1,598,000
Cost of goods sold:
Reported amount
Adjustment for 12/31/Year 1 error
Adjustment for 12/31/Year 2 error
Corrected amount
For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to
correct the reported amounts.
Note: Amounts to be deducted must be entered with a minus sign.
Net income:
Reported amount
Adjustment for 12/31/Year 1 error
Adjustment for 12/31/Year 2 error
Corrected amount
Total current assets:
Reported amount
Adjustment for 12/31/Year 1 error
A discutut for 41№-------
Year 3
$ 808,000
268,000
1,248,000
1,263,000
Year 1
Year 2
Year 3
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