Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example.     Effect on 2020 Net Income a. Failed to record a 2020 expense. + b. Ending 2019 inventory is understated.   c. Ending 2020 accrued expense is overstated.   d. Ending 2020 inventory is overstated.   e. Ending 2019 accrued revenue is understated.   f. Ending 2020 prepaid expense is overstated.   g. Ending 2019 unearned revenue is overstated.   h. Ending 2020 accrued revenue was overstated.   i. Ending 2019 prepaid expense was overstated.   j. Ending 2019 accrued expense is overstated.   k. Ending 2020 unearned revenue is understated.

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 59E: Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements...
icon
Related questions
Question

Several errors are listed below. Indicate the effect each error would have on 2020 net income by selecting a plus sign (+), minus sign (-) or NI (no impact). Part (a) has been completed as an example.

    Effect on 2020
Net Income
a. Failed to record a 2020 expense. +
b. Ending 2019 inventory is understated.  
c. Ending 2020 accrued expense is overstated.  
d. Ending 2020 inventory is overstated.  
e. Ending 2019 accrued revenue is understated.  
f. Ending 2020 prepaid expense is overstated.  
g. Ending 2019 unearned revenue is overstated.  
h. Ending 2020 accrued revenue was overstated.  
i. Ending 2019 prepaid expense was overstated.  
j. Ending 2019 accrued expense is overstated.  
k. Ending 2020 unearned revenue is understated.  
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,