Question
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $228,230.00 instead of the correct amount
During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $228,230.00 instead of the correct amount of $183,770.00. What would be the effect on the balance sheet and income statement?
Select the correct answer.
assets overstated by $44,460.00 retained earnings understated by $44,460.00 net income statement understated by $44,460.00.
assets overstated by $228,230.00 retained earnings understated by $183,770.00 no effect on the income statement.
assets and retained earnings overstated by $44,460.00 net income overstated by $44,460.00.
assets and retained earnings overstated by $183,770.00 net income understated by $228,230.00.
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Fundamental Financial Accounting Concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Mark Edmonds, Christopher Edmonds
10th Edition
126015940X, 978-1260159400
