b) The Company reflected total salaries of $28,000 for the last two weeks in December as selling, general and administrative expenses. 70% of the salaries for this period related to workers at the production facility with the remaining 30% covering administrative and sales staff. All of the inventory in production during the last two weeks in December was still in the production line at December 31, 2006. If the salaries costs had been properly recorded, what would be correct amounts for the following line items? Current assets? WIP inventory? Cost of goods sold? Net income? Total shareholders' equity? Accounting for Managers - ACCT 6305 Assignment 2 PART 1: Effects of Accounting Errors on Financial Statements In each of the following questions, I have described transactions that were either "missed" or recorded incorrectly in the annual financial statements ending on December 31. Indicate the effects (both the direction and amount) on each account if the mistakes) were corrected, using the following notation: increase (+), decrease (-) or no effect (NE). Make sure you write down NE if you think there is no effect. Each transaction is independent (i.e. the first transaction does not affect the second. etc...), For each question be sure to show by what amounts the financial statements would be changed after the corrections are made for the forgotten or mistaken transactions. Ignore any effect of taxes. Example: A firm neglected to record a payment to a supplier of $10,000 for previously recorded accounts payable. If this mistake was corrected the effects on the following accounts would be: to search