Inventory Errors} Lhasa Corp. reported net income of ($ 150,000) for 2018 and ($ 165,000) for 2019.

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Inventory Errors}

Lhasa Corp. reported net income of $\$ 150,000$ for 2018 and $\$ 165,000$ for 2019. Early in 2019, McLelland discovers that the December 31,2018 , ending inventory was overstated by $\$ 15,000$. For simplicity, ignore taxes.

\section*{Required:}

1. What is the correct net income for 2018? For 2019 ?

2. Assuming the error was not corrected, what is the effect on the statement of financial position at December 31, 2018? At December 31, 2019?

\section*{Cornerstone Exercise

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Cornerstones Of Financial Accounting

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Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone

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Question Posted: Jun 07, 2024 01:22 AM

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Inventory Errors} Lhasa Corp. reported net income of ($ 150,000) for 2018 and ($ 165,000) for 2019.

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Cornerstones Of Financial Accounting

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