Chapter 08 - In-Class Exercises_1

Chapter 08 - In-Class Exercises_1 - Chapter # 8 In-Class...

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Chapter # 8 In-Class Exercises Page 1 of 6 Chapter 08 - In-Class Exercises.doc - 05/02/07) Exercise #1 (All sales and purchases are on credit.) Indicate in each of the spaces provided the effect of the described errors on the various elements of a company's financial statements. Use the following codes: O = amount is overstated; U = amount is understated; NE = no effect. Assume a periodic inventory system. Accounts Accounts Cost of Example: Receivable Inventory Payable Sales Goods Sold Excluded goods in rented warehouse from inventory NE U NE NE O count. ___________________________________________________________________________________ 1. Purchased goods in transit shipped "f.o.b. destination" by supplier were recorded as a purchase but were excluded from ending inventory. ___________________________________________________________________________________ 2. Goods held on consignment were included in inventory count and recorded as a purchase. ___________________________________________________________________________________ 3. Goods in transit shipped
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This note was uploaded on 01/20/2011 for the course ACC 301 taught by Professor Staff during the Fall '08 term at Kentucky.

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Chapter 08 - In-Class Exercises_1 - Chapter # 8 In-Class...

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