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2011 Financial 3 Update - 2011 Financial 3 Update Financial...

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2011 Financial 3 Update Financial 3 Update for the 2011 Edition Last Updated March 18, 2011 SECTION A: TEXT AND LECTURE ERRATA Item A.1 Pg. F3-9, SOLUTION (continued) The security labels in the chart at the end of this solution have been switched. The chart should appear as follows (changes highlighted): Security JKL & GHI GHI & JKL (net) 12/31/Y1 12/31/Y2 Accumulated Year 2 Accumulated OCI OCI OCI Gain<Loss> Gain<Loss> Gain<Loss> Security JKL GHI <$25,000> 1 $25,000 -0- Security GHI JKL 5,000 2 <15,000> <10,000> <$20,000> $10,000 <$10,000> 1 - Security JKL GHI - Loss in 12/31/Y1 AOCI = $165,000 fair value - $190,000 cost = <$25,000> 2 - Security GHI JKL - Gain in 12/31/Y1 AOCI = $175,000 fair value - $170,000 cost = $5,000 Item A.2 Pg. F3-47, Example - Intercompany Profit in Inventories (added March 18, 2011) In this example, Gearty sells inventory to Olinto. Therefore, the second journal entry in the example should be corrected as follows (change highlighted): Journal entry to record the purchase sale by Olinto: Inventory $1,100,000 Accounts payable $1,100,000 1 © 2010 DeVry/Becker Educational Development Corp. All rights reserved.
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