P06 - Student Name Class Problem 06-04A NIKITA COMPANY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Student Name: Class: Problem 06-04A NIKITA COMPANY Adjustments for to Correct Inventory Errors Cost of goods sold: 2008 2009 2010 Reported amount Adjustments for: 12/31/2008 error 12/31/2009 error Corrected Net income: 2008 2009 2010 Reported amount Adjustments for: 12/31/2008 error 12/31/2009 error Corrected Total current assets: 2008 2009 2010 Reported amount Adjustments for: 12/31/2008 error 12/31/2009 error Corrected Equity: 2008 2009 2010 Reported amount Adjustments for: 12/31/2008 error 12/31/2009 error Corrected 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? Explain 3. Explain why the understatement of inventory by $56,000 at the end of 2008 results in an understatement of equity by the same amount in that year.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Given Data P06-04A: NIKITA COMPANY For Year Ended December 31 Key Figures 2008 2009 2010 Cost of goods sold $623,000 $955,000 $780,000 Net income 230,000 275,000 250,000 Total current assets 1,247,000 1,360,000 1,230,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

P06 - Student Name Class Problem 06-04A NIKITA COMPANY...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online