Reference no: EM133173594
Question - Effect of Errors in Physical Inventory - Missouri River Supply Co. sells canoes, kayaks, white water rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as $782,620 instead of the correct amount of $806,100.
Enter all amounts as positive numbers.
a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply.
b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2.
c. If uncorrected, what would be the effect of the error on the 20Y3 income statement?
d. If uncorrected, what would be the effect of the error on the December 31, 20Y3, balance sheet?
1. The December 31, 20Y3, balance sheet would be correct, since the 20Y2 inventory error reverses itself in 20Y3.
2. The December 31, 20Y3, balance sheet would be incorrect, since the 20Y2 inventory error overstates the beginning inventory in20Y3.
3. The December 31, 20Y3, balance sheet would be incorrect, since the 20Y2 inventory error understates the beginning inventory in 20Y3.
|
Development from the perspective of multiple stakeholders
: This discussion looks at what career development from the perspective of multiple stakeholders. From a personal point of view, you certainly benefit from traini
|
|
Compute equivalent units of production for materials
: Units in ending work in process inventory 8,200. Compute equivalent units of production for materials and for conversion costs
|
|
Prepare the stockholders equity section of the balance sheet
: Sold 85,000 shares of the common stock in an initial public offering for $14 per share. Prepare the stockholders equity section of the balance sheet
|
|
Calculate the net present value of the contract
: Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to net present value criterion
|
|
What would be the effect of the error on income statement
: Missouri River Supply Co. sells canoes, kayaks, white water rafts, If uncorrected, what would be the effect of the error on the 20Y3 income statement
|
|
What happens to employment and wages of unskilled workers
: Several proposals have been made to encourage employers to hire former welfare recipients, What happens to employment and wages of unskilled workers
|
|
How many equivalent units of material costs
: On January 31, 2021, 15,000 units were on hand which were 30% complete as to conversion costs. How many equivalent units of material costs
|
|
What is the company capital acquisitions ratio
: Cash received from the sale of long-lived assets: $5 million. What is the company capital acquisitions ratio based on the above information
|
|
What was the balance in the accumulated depreciation account
: The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,000, What was the balance in the Accumulated Depreciation account
|