CH 6 LO 1 Homework Question 2 of 2 Farley Bains, an auditor with Nolls CPAS, is performing a review of Novak Corp.'s Inventory account. Novak Corp. did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $829,000. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) 1. 2. 3. Ending inventory-as reported Included in the company's count were goods with a cost of $347,000 that the company is holding on consignment. The goods belong to Nader Corporation. The physical count did not include goods purchased by Novak Corp. with a cost of $48,000 that were shipped FOB shipping point on December 28 and did not arrive at Novak Corp.'s warehouse until January 3. 0.43/3: Included in the Inventory account was $17,300 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. $ |||| 829000 SUPPORT

Fallev Baims an auditor with Nolls CPAs, is performing a review of Novak Corp's inventory account. Noval Corp did not heve a gpood year, and top management is under pressure to boost reported incone. According to its records, the imenton basance at ws ar-end was $829,000. However, the followine information was not considered when determininc that amount Prepare a schedule to determine the correct inwentory amount off an ameunt reduces the account balance thea enter with a negative sign preceding the number, es, 15,000, er parenthesis es, (15,000), Enter o if there is no effect) Ending inventory-as reported 1. Included in the companys count were soods with a cost of $347.000 that the corripany is: holding on consignment. The goods belang to Nader Corporstion. 2. The physical count did not inclide goods purchased by Nowak Cora with a cot of $48.000 that were shipped FOB shoping point on December 28 and did not arrive at Novak Corp't warehoute indirs smiarys 3 included in the irventory account was $17,000 of office supples that were stored in the Warehouse and were to be used by the companys superviors and manager during the comins yed