Question

1. Purchases of inventory during the year were $450,000. At the end of the year, ending...

1. Purchases of inventory during the year were $450,000. At the end of the year, ending inventory is $200,000 and cost of goods sold is $400,000. What was beginning inventory?

a. $100,000

b. $150,000

c. $250,000

d. $300,000

2. Beginning inventory is $142,000. During the period, a company has three purchases of inventory with a cost of $75,000, $80,000, and $56,000. Also during the period, inventory with a cost of $190,000 was sold to customers for $260,000. What is the ending balance of inventory?

a. $93,000

b. $353,000

c. $21,000

d. $163,000

3.If a company understates its ending balance of inventory in year 1 and it records inventory correctly in year 2, which one of the following is true?

a. Net income is overstated in year 1.

b. Net income is understated in year 2

c. Retained earnings is understated in year 2.

d. Cost of goods sold is understated in year 2.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. At the end of the year, Blue Sales Company omitted $36,400 of inventory from their...
1. At the end of the year, Blue Sales Company omitted $36,400 of inventory from their year-end inventory count. As a result, Net income for the year will be understated and cost of goods sold will be correct. Net income for the year will be correct and cost of goods sold will be overstated. Net income for the year will be understated cost of goods sold will be overstated. Net income for the year will be overstated cost of goods...
Ending inventory for fiscal year ending December 31, 2019 was overstated (some of the inventory was...
Ending inventory for fiscal year ending December 31, 2019 was overstated (some of the inventory was counted twice). What would this effect have on year ending 2019: Assets overstated Assets understated Retained Earnings overstated Retained Earnings understated Sales overstated Sales understated Gross Profit overstated Gross Profit understated Net Income overstated Net Income understated                Ending inventory for fiscal year ending December 31, 2018 was overstated (some of the inventory was counted twice). Ending inventory for December 31, 2019 was correctly counted....
If both ending inventory and purchases are understated by $10,000 at the end of the year,...
If both ending inventory and purchases are understated by $10,000 at the end of the year, how are COGS, net income, and retained earnings affected in the current year? Can you please explain why, im having a bit of trouble understanding the current year effect in inventory (B.I, PURCHASES, GAS, E.I, COGS).
Cost of Goods sold at the Pioneer Company for Year 3 and Year 4 were as...
Cost of Goods sold at the Pioneer Company for Year 3 and Year 4 were as follows: Year 3 Year 4 Beginning inventory $ 135,000 $ 145,000 Purchases 350,000 425,000 Cost of goods available for sale 485,000 570,000 Ending inventory 145,000 150,000 Cost of goods sold $ 340,000 $ 420,000 Pioneer Company made two errors: 1) ending inventory reported at the end of Year 3 was understated by $15,000 and 2) ending inventory at the end of Year 4 was...
Empire Co. reported cost of goods sold as follows:      2018      2019 Beginning inventory $  ...
Empire Co. reported cost of goods sold as follows:      2018      2019 Beginning inventory $   54,000 $   64,000 Cost of goods purchased 847,000 891,000 Cost of goods available for sale 901,000 955,000 Ending inventory     64,000     55,000 Cost of goods sold $837,000 $900,000 Jim Holt, the bookkeeper, made two errors: (1) 2018 ending inventory was overstated by $3,000. (2) 2019 ending inventory was understated by $19,000. Instructions Assuming the errors had not been corrected, indicate the dollar effect...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y1, Fonda incorrectly counted its inventory as $337,500 instead of the correct amount of $328,850. a. State the effects of the error on the December 31, 20Y1, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Understated / Overstated Amount Inventory Overstated $ Current Assets Overstated $ Total Assets Overstated $ Stockholders'...
A company understated its ending inventory in Year 1 by $25,000 and also understated its ending...
A company understated its ending inventory in Year 1 by $25,000 and also understated its ending inventory in Year 2 by $20,000. Neither error was discovered until Year 3. As a result, of these two errors, gross profit for Year 2 was: Multiple Choice a. Overstated by $5,000. b. Understated by $45,000. c. Understated by $20,000. d. Overstated by $25,000.
5.If ending inventory for the year ended December​ 31, 2016, is​ understated, this error will cause​...
5.If ending inventory for the year ended December​ 31, 2016, is​ understated, this error will cause​ owners' equity to​ be: A. understated at the end of 2016 and overstated at the end of 2017 B. correctly stated at the end of 2016 and overstated at the end of 2017 C. overstated at the end of 2016 and understated at the end of 2017 D. understated at the end of 2016 and correctly stated at the end of 2017 6.The gross...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies...
Effect of Errors in Physical Inventory Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y1, Fonda incorrectly counted its inventory as $247,580 instead of the correct amount of $237,680. Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 20Y1, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated / Understated Amount Inventory Overstated $ Current Assets Overstated...
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2 QUESTIONS: As a result of counting its...
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2 QUESTIONS: As a result of counting its physical inventory incorrectly, Mill Corp. understated its inventory balance at 12/31/18 by $6,000. Its physical inventory count was correct in the subsequent year, 2019. 1. As a result of the 2018 error, what will be the effect on Mill’s cost of goods sold, net income, inventory, and retained earnings balances at the end of 2018? Ignore tax effects. Cost of Goods Sold      Net...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT