Ch. 8, Q. 9

The net income per books of Carol Garcia Company was determined without knowledge of the errors indicated below. Net Income per Books Error in Ending Inventory Year 2015 $49,900 Overstated $2,240 Overstated 9,410 50,740 52,890 Understated 10,040 2016 2017 2018 2019 2020 54,830 No error 56,990 58,710 Understated Overstated 2,050 8,300 Prepare a worksheet to show the adjusted net income figure for each of the years after taking into account the inventory errors. Errors in Inventories Net Income Per Books Overstatement Understatement Jan 1 Overstatement Dec. 31 Understatement Corrected Net Income Year Jan 1 Dec 31 2015 $49,800 2016 50,740 52,890 2017 2018 54,830 2019 56,890 2020 54,710