At the end of the year 2007 the inventory wasunderstated by

Assignment Help Accounting Basics

Reference no: EM13613895

Boswell Electric prepared the following condensedincome statements for two successive years:

Particulars

2008

(Rs.)

2007

(Rs.)

Sales

Cost of goods sold

Gross profit on sales

Operating expenses

Net income

200,000

150,000

50,000

30,000

20,000

160,000

100,000

60,000

20,000

40,000

At The end of the year 2007, the inventory wasunderstated by Rs. 10,000, but the error was not discovered untilafter the accounts had been closed and financial statementsprepared at the end of the year 2008. The balance sheets for thetwo years showed owner's equity of Rs. 50,000 at the end ofthe year 2007 and Rs. 60,000 at the end of the year 2008. (Boswellis organized as a sole-proprietorship and does not incur incometaxes expense.)

Required:

Prepare the corrected income statement for the year 2007 and2008
What correction, if any, should be made in the amounts ofthe company's owner's equity at the end of the year2007 and 2008?

Reference no: EM13613895

Questions Cloud

A cascade system using two ideal refrigeration cycles is : in cooling situations where the desired temperature range is large two refrigeration cycles can be stacked to create a

An article in the 1993 volume of the transactions of the : an article in the 1993 volume of the transactions of the american fisheries society reports the results of a study to

Use n9 and p08 to complete parts a through c below find the : use n9 and p0.8 to complete parts a through c belowa find the probabilities and construct a binomial probability

What angle acompensates for the wind such that the shell : a fireworks shell is launched vertically from point a with speed sufficient to reach a maximum altitude of 500 ft. a

At the end of the year 2007 the inventory wasunderstated by : boswell electric prepared the following condensedincome statements for two successive

The diameter of bearing shafts that are manufactured in : 1. the diameter of bearing shafts that are manufactured in your factory follow a normal distribution with a mean of 1

What is the heat rate of this plant in the winter in : 1 a nuclear power plant reactor operates at 3612 mwth. in the winter the plant is able to achieve an electrical output

A random sample of 109 light bulbs had a mean life of x558 : a random sample of 109 light bulbs had a mean life of x558 hours with a standard deviation of o32 hours. construct a

What are the components of the displacement vector from : the summit of a mountain 2700m above base camp is measured on a map to be 4940m horizontally from the camp in a

User Account

All Pages