dinprogress false eBook Calculator Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2011, Fonda incorrectly counted its inventory as $339,880 instead of the correct amount of $326,280 Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 2011, balance sheet of Fonda Motorcycle Shop. Balance Sheet Items Overstated/Understated Amount Inventory Overstated Current Assets Overstated Total Assets Overstated Stockholders' Equity Overstated b. State the effects of the error on the income statement of Fonda Motorcycle Shop for the year ended December 31, 2011 Income Statement Items Overstated/Understated Amount Cost of Goods Sold Understated Gross Profit Overstated Net Income Overstated c. If uncorrected, what would be the effects of the error on the 2012 income statement? Income Statement Items Cost of Goods Sold Understated/Overstated Amount Overstated Gross Profit Understated Net Income Understated d. If uncorrected, what would be the effects of the error on the December 31, 2012, balance sheet? 1. The December 31, 2012, balance sheet would be correct, since the 2011 Inventory error reverses itself in 2012 Check My Work Previous Next > All work saved