Effect of Errors in Physical Inventory Hydro White Water Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2014, Hydro White Water incorrectly counted its inventory as $790,110 instead of the correct amount of $813,810. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2014, balance sheet of Hydro White Water. Balance Sheet Items Understated/Overstated Merchandise Inventory Current Assets Total Assets Net Income Owner's Equity b. State the effect of the error on the income statement of Hydro White Water for the year ended December 31, 2014. Income Statement Items Overstated/Understated Cost of Merchandise Sold Gross Profit $ Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Amount $ c. If uncorrected, what would be the effect of the error on the 2015 income statement? Overstated / Understated Amount Amount

Effect of Errors in Physical Inventory Hydro White Water Co, sells canoes, kavaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31.2014 , Hydro White. Water incorrectly counted its inventory as $790,110 instead of the correct amount of $813,810. Enter all ambunts as positive numbers. a. State the effect of the error on the December 31, 2014, balance sheet af Hydro White Water, b. State the effect of the error on the income staternent of Hydro White Water for the vear ended Dectmber 31,2014. c. If uncorrected, what would be the effect of the error on the 2015 income stadement