Glacier made two errors: (1) 2016 ending inventory was overstated by $5,500, and (2) 2017 ending inventory

Question:

Glacier made two errors: (1) 2016 ending inventory was overstated by $5,500, and (2) 2017 ending inventory was understated by $4,000.

Instructions

(a) Calculate the correct cost of goods sold and ending inventory for each year.

(b) Describe the impact of the errors on profit for 2016 and 2017 and on owner's equity at the end of 2016 and 2017.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Accounting Principles

ISBN: 978-1119048503

7th Canadian Edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: May 16, 2017 10:23 AM

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Glacier made two errors: (1) 2016 ending inventory was overstated by $5,500, and (2) 2017 ending inventory

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a 2017 2016 Ending inventory incorrect 30000 30000 Error 4000 U 5500 O Ending inventory correct 3400...View the full answer

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