Effect of Inventory Errors

During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366,900 instead of the correct amount of $378,500. Indicate the effect of the misstatement on Kate Interiors August 31, 2019, balance sheet and income statement for the year ended August 31, 2019. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers.

Merchandise inventory

Effect of Inventory Errors

During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly counted its inventory as $366,900 instead of the correct amount of $378,500. Indicate the effect of the misstatement on Kate Interiors August 31, 2019, balance sheet and income statement for the year ended August 31, 2019. Also record the amount of each overstatement or understatement. Enter all amounts as positive numbers.

Merchandise inventory			$
Current assets			$
Total assets			$
Owner's equity			$
Cost of merchandise sold			$
Gross profit			$
Net income			$

$

Current assets

$

Total assets

$

Owner's equity

$

Cost of merchandise sold

$

Gross profit

$

Net income

$