FACCT Quiz 1.pdf - 94 Award 1.00 point Problems Adjust...

This preview shows page 1 - 2 out of 3 pages.

94. Award: 1.00 point Problems? Adjust credit for all students. Navajo Company’s financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory, is understated by $56,000 and Year 2 ending inventory, is overstated by $20,000. For Year Ended December 31 Year 1 Year 2 Year 3 (a) Cost of goods sold $ 615,000 $ 957,000 $ 780,000 (b) Net income 230,000 285,000 241,000 (c) Total current assets 1,255,000 1,365,000 1,200,000 (d) Total equity 1,387,000 1,530,000 1,242,000 Required: 1. For each key financial statement figure—( a ), ( b ), ( c ), and ( d ) below—prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. For each key financial statement figure—( a ), ( b ), ( c ), and ( d ) below—prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Required 1

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture