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Unformatted text preview: E6-2Correct.Kale Thompson, an auditor with Sneed CPAs, is performing a review of Strawser Company's inventory account. Strawser did not have a good year and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $740,000. However, the following information was not considered when determining that amount. InstructionsDetermine the correct inventory amount. (If answer is zero, please enter 0. Do not leave any fields blank. If amount has a negative effect, use either a negative sign preceding the number eg -45 or parentheses eg (45).)Ending inventory-as reported.$ 740000 1.Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Superior Corporation.-250000 2.The physical count did not include goods purchased by Strawser with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Strawser's warehouse until January 3. not arrive at Strawser's warehouse until January 3....
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This note was uploaded on 07/31/2011 for the course ACCT 557 taught by Professor Kahn during the Spring '10 term at Strayer.
- Spring '10
- Financial Accounting