Accounting Questions (5 & 6)

Question 5: Refer to Question 5.png

Note: Options for Blanks with arrows are No Effect, Overstated, and Understated

Concord Limited has a calendar-year accounting period. The following errors were discovered in 2020. 1. The December 31, 2018 merchandise inventory had been understated by $50,600. 2. Merchandise purchased on account in 2019 was recorded on the books for the first time in February 2020, when the original invoice for the correct amount of $2,400 arrived. The merchandise had arrived on December 28, 2019, and was included in the December 31, 2019 merchandise inventory. The invoice arrived late because of a mix-up by the wholesaler. 3. Inventory, valued at $1,400, held on consignment by Concord was included in the December 31, 2019 count. Calculate the effect of each error on the 2019 net income. (Do not leave any answer field blank. Enter 0 for amounts.) 1. Net income/(loss) for 2019 is v by $ 2. Net income/(loss) for 2019 is by $ 3. Net income/(loss) is by $ Calculate the effect, if any, that each error had on the related December 31, 2019 statement of financial position items. (Do not leave any answer field blank. Enter 0 for amounts.) Inventory is v . by $ Accounts payable is V . retained earnings is v. by s Inventory is by $ and retained earnings are v. by $Bridgeport Corporation has the following four items in its ending inventory: Estimated Estimated Item Cost Selling Price Disposal Costs Neutrinos $ 2,000 $2,280 $103 Ocillinos 4.940 4,840 120 Electrons 4.250 4,585 220 Protons 3,390 4,400 111 Assume that Bridgeport is a public company using IFRS. Determine the total value of ending inventory, using the and net realizable value model applied on an individual item basis. Item LC and NRV Neutrinos $ Ocillinos Electrons Protons Total Would there be any difference in accounting if Bridgeport were a private entity using ASPE