Nadegeco Question - Acco 310 - Class Problem 1 As the newly...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Acco 310 - Class Problem 1 As the newly hired accountant for Nadègeco, you are anxious to impress. The first day on the job you obtain a copy of the financial statements for the year ended December 31, 2010, as well as some details of transactions over the past few years. Excerpts are given below: Nadègeco Ltd. Statement of Income and Retained Earnings For the Year Ended December 31, 2010 2010 2009 Sales $1,000,000 $800,000 Cost of Sales (500,000) (400,000) Gross Profit 500,000 400,000 Operating expenses 300,000 240,000 Administrative expenses 150,000 120,000 Total expenses 450,000 360,000 Income before taxes 50,000 40,000 Income taxes (20,000) (16,000) Net Income 30,000 24,000 Retained earnings, beginning 124,000 100,000 Retained earnings, ending $154,000 $124,000 Transaction details: 1. The merchandise inventory at December 31, 2009 was overstated by $10,000 and the merchandise inventory at December 31, 2010 was understated by $15,000. 2. In 2009 the company expensed a three- year insurance premium of $4,500.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/17/2012 for the course ACCOUNTING 310 taught by Professor Ily during the Spring '11 term at Concordia Canada.

Page1 / 2

Nadegeco Question - Acco 310 - Class Problem 1 As the newly...

This preview shows document pages 1 - 2. Sign up to view the full document.

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