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inventory in class problem

inventory in class problem - purchases were recorded in...

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Inventory – In-class question Listed below are four common accounting errors. Using the format shown, indicate the effect, if any, of each of the errors on the company's statements for the items shown. The company uses a periodic inventory method. 20x3 Statements Errors: Liabs Dec 31, x2 NI for x2 Liabs Dec 31, x3 Equ ity Dec 31, x3 NI for x3 Goods bought in 20x2 were included in December 31 inventory, but purchases and the liability were not recorded until early 20x3. Goods bought in 20x3 were included in December 31, 20x2 inventory, and
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Unformatted text preview: purchases were recorded in 20x2. Goods were bought in 20x2 and purchases were recorded in that year; however, the goods were not included in the December 31 inventory as they should have been. Goods bought in 20x2 were excluded from December 31 inventory, and purchases were recorded early in 20x3. Required : Use a + (plus sign) to denote that an item is too high as a result of the error, a – (minus sign) to denote that it is too low, and a 0 (zero) to indicate no effect....
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