Question

Concord Enterprises Ltd. reported cost of goods sold for 2017 of $2.3 million and retained earnings...

Concord Enterprises Ltd. reported cost of goods sold for 2017 of $2.3 million and retained earnings of $4.2 million at December 31, 2017. Concord later discovered that its ending inventories at December 31, 2016 and 2017 were overstated by $150,000 and $49,000, respectively.

Determine the correct amounts for 2017 cost of goods sold and December 31, 2017 retained earnings.

Corrected cost of goods sold $
Corrected 12/31/17 retained earnings $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Cost of goods sold reported for 2017 = $2.3 million

Retained earnings reported for 2017 = $4.2 million

Overstated ending inventory at December 31, 2016 = $150,000

Overstated ending inventory at December 31, 2017 = $49,000

Corrected cost of goods sold = Cost of goods sold reported for 2017 - Overstated ending inventory at December 31, 2016 + Overstated ending inventory at December 31, 2017

= 2,300,000 - 150,000 + 49,000

= $2,199,000

Corrected 12/31/17 retained earnings = Retained earnings reported for 2017 - Overstated ending inventory at December 31, 2017

= 4,200,000 - 49,000

= $4,151,000

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
Bonita Enterprises reported cost of goods sold for 2020 of $1,419,800 and retained earnings of $5,569,300...
Bonita Enterprises reported cost of goods sold for 2020 of $1,419,800 and retained earnings of $5,569,300 at December 31, 2020. Bonita later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $99,040 and $31,710, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings. Correct cost of goods sold: Corrected 12/31/20 Retained Earnings:
Bramble Enterprises reported cost of goods sold for 2020 of $1,474,700 and retained earnings of $5,621,900...
Bramble Enterprises reported cost of goods sold for 2020 of $1,474,700 and retained earnings of $5,621,900 at December 31, 2020. Bramble later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $109,760 and $36,670, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings. Corrected cost of goods sold $enter a dollar amount Corrected 12/31/20 retained earnings $enter a dollar amount
Walgreens Boots Alliance, Inc., reported inventories of $2,280 million and $2,362 million in its August 31,...
Walgreens Boots Alliance, Inc., reported inventories of $2,280 million and $2,362 million in its August 31, 2017, and August 31, 2016, balance sheets, respectively. Cost of goods sold for the year ended August 31, 2017, was $29,364 million. The company uses primarily the LIFO inventory method. A disclosure note reported that if FIFO had been used instead of LIFO, inventory would have been higher by $286 million and $266 million at the end of the August 31, 2017, and August...
Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold as follows. (Currency in Uzbekistan...
Burkhanov Hardware Ltd. in Tashkent, Uzbekistan reported cost of goods sold as follows. (Currency in Uzbekistan s’om, UZS) (20%)      2018                                   2019     Beginning inventory                    UZS 2,000,000                          UZS 3,000,000 Cost of goods purchased                 15,000,000                             17,500,000 Cost of goods available for sale      17,000,000                             20,500,000 Ending inventory                              (3,000,000)                             (3,500,000) Cost of goods sold                      UZS 14,000,000                    UZS 17,000,000 In 2020, the internal auditor of Burkhanov found that the company made following two errors:...
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...
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years...
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2018 2017 2016 Balance at beginning of year $ 6,851,992 $ 5,497,752 $ 5,654,552 Net income (loss) 3,311,700 2,270,900 (156,800 ) Deductions: Stock dividend (34,000 shares) 245,000 Common shares retired, September 30 (130,000 shares) 215,660 Common stock cash dividends 892,950 701,000 0 Balance at end...
You have been hired as the new controller for the Ralston Company. Shortly after joining the...
You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2018, you discover the following errors related to the 2016 and 2017 financial statements: Inventory at 12/31/16 was understated by $7,500. Inventory at 12/31/17 was overstated by $10,500. On 12/31/17, inventory was purchased for $4,500. The company did not record the purchase until the inventory was paid for early in 2018. At that time, the purchase was recorded by a debit to...
Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and cost of goods sold of...
Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and cost of goods sold of $1,827. Inventories at year - end 2007 and 2006, respectively, were $553 and $562. The company uses the LIFO method for inventory valuation and discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. Compared to the inventory turnover ratio reported, if Sauerbraten had exclusively used the FIFO...
Las Palmas Company reported the following items on its financial statements for the year ending December...
Las Palmas Company reported the following items on its financial statements for the year ending December 31, 2017: Sales $ 560,000 Cost of goods sold $400,000 Salary expense 40,000 Interest expense 30,000 Dividends 30,000 Income tax expense 25,000 How much will be reported as retained earnings on Las Palmas' balance sheet at December 31, 2017, if this is the first year of operations?
1. Penske Stanza Revenues $ (816,000 ) $ (724,000 ) Cost of goods sold 290,600 181,000...
1. Penske Stanza Revenues $ (816,000 ) $ (724,000 ) Cost of goods sold 290,600 181,000 Depreciation expense 163,000 368,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (700,000 ) (216,000 ) Current assets 460,000 550,000 Copyrights 950,000 447,000 Royalty agreements 662,000 1,122,000 Investment in Stanza Not given 0 Liabilities (554,000 ) (1,508,000 ) Common stock (600,000 ) ($20 par) (200,000 ) ($10 par) Additional paid-in capital (150,000 ) (80,000 ) Note: Parentheses indicate a credit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT