What revised earnings after correction of errors for company

Assignment Help Financial Accounting
Reference no: EM132970398

Company Ltd. prepared its draft 20X0 financial statements in February 20X1. The draft SCI showed earnings of $1,100,000. After the draft statements were prepared, but prior to their approval and release, the external auditors discovered several errors:

a) Inventory of $50,000 that was received from a vendor on December 29, 20X0 (and included in the December 31, 20X0 physical inventory count) had not been recorded as an account payable until well into January 20X1.

b) The company had shipped product worth $240,000 to a distant customer FOB shipping point on December 28, 20X0. The revenue (and AR) was recorded by Company on January 4, 20X1. However, the shipment was excluded from inventory, so COS has been recorded.

c) Although the company's internal auditors had discovered a calculation error in the worksheets for the December 31, 20X0 physical inventory, the error was not yet corrected. Year-end 20X0 inventory actually should have been $100,000 greater than recorded and reported.

d) Product costing $160,000 was shipped to a large chain of stores in the final week of the fiscal year; a sale (and receivable) of $250,000 had correspondingly been recorded. However, the chain had accepted the product on consignment.

Problem 1:
What is the revised 20X0 earnings after correction of these errors?

Reference no: EM132970398

Questions Cloud

Requirement of international marketing : Requirement of international marketing or internationalization is identifying and justifying the potentiality of that particular market to confirm
Prepare the resulting journal entries for year : Prepare the resulting journal entries for year 7. On that day, Company B decides to issue 10,000 additional shares on January 1, year 7.
How the debt investment and related accounts would be : Show how the debt investment and related accounts would be presented in Koodeau' financial statements for the year ended July 31, 2010
Which of the higher level of receivables implies : Which one of the higher level of receivables implies? A higher level of prepayments [assets] implies which one of the following?
What revised earnings after correction of errors for company : Inventory of $50,000 that was received from a vendor on December 29, 20X0. What is the revised 20X0 earnings after correction of these errors?
Prepare journal entries to record the sale of one model : Prepare journal entries to record the sale of one model A forklift truck plus service contract for $180,000 assuming a comparable service contract is sold
How the canadian source income would be taxed : How the Canadian source income would be taxed under Canadian tax legislation. Hebert Haman is a resident of a country that does not have a tax treaty
Give the entries in the accounts of cosmo : Give the items and amounts that would be reported in 20X0 earnings and all amounts on the statement of financial position. Give the entries in the accounts
What is the impairment loss for cosmo : Is the machine impaired? If so, what is the impairment loss? Cosmo has a large piece of machinery, and management has determined there is potential impairment

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss factors that lead to capital budgeting decisions

State and discuss four factors that lead to capital budgeting decisions. Additionally, name and discuss the technique for measuring results for a capital budget

  Program the mrp for the individual project problem

Program the MRP for the Individual Project Problem below and solve it with the use of POM-QM for Windows. (Refer to Appendix IV in the Heizer and Render (2011) textbook.

  Required write a report to the client geolab exploration

required write a report to the client geolab exploration limited which covers the followinga. a two-column common-size

  Company regular sales volume or fixed manufacturing costs

Filling this special order would not affect Central Company's regular sales volume or fixed manufacturing costs.

  Determine and calculate the expected return

Calculate the expected return? Find the standard deviation?Mr. Warren buffet is considering investing in security that has the distribution

  How the components of audit risk are affected

Explain how the components of audit risk (inherent, control or detection risk) are affected.You are the audit senior responsible for audit of Sampson Limited.

  Calculate the net present value for this proposed project

Suppose that the appropriate discount rate for this project is 6.6%, compounded annually. Calculate the net present value for this proposed project

  The business generated taxable income

Fleming, Inc., a domestic corporation, operates in both Canada and the United States. This year, the business generated taxable income of $400,000 from foreign sources and $300,000 from U.S. sources. All of Fleming’s foreign-source income is in the g..

  Calculate the wacc at target ratios

22% ordinary shares issued (2000000 shares) of R8000000, retained earnings of R1000000, Calculate the WACC at target ratios.

  Show that the macaulay duration one period from now

Show that the two sets of cash ?ows will have the same present value at t=1 and the Macaulay duration one period from now is exactly 1 less than it is now.

  Prepare a data flow diagram of all operations described

The last machine in each work cell prints a bar-code label that the worker affixes to the box. Prepare a data flow diagram of all operations described

  Which the term inventory for a merchandiser refers to

Which Gross profit is calculated as the difference between net sales revenue and? The term "inventory," for a merchandiser, refers to

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd