Empire Co reported cost of goods sold as follows 2018 2019 Beginning inventory $ 54,000 $ 64,000 Cost of goods purchased 847,000 891,000 Cost of goods available for sale 901,000 955,000 Ending inventory 64,000 55,000 Cost of goods sold $837,000 $900,000 Jim Holt, the bookkeeper, made two errors (1) 2018 ending inventory was overstated by $3,000 (2) 2019 ending inventory was understated by $19,000 Instructions Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed below Also indicate if the amounts are overstated (O) or understated (U) 2018 2019 Overstated Over Amount Understated Amount Under Total assets $ $ Stockholder's equity $ $ Cost of goods sold $ $ Net income $ $

Question

Empire Co  reported cost of goods sold as follows  2018 2019 Beginning inventory $ 54,000 $ 64,000 Cost of goods purchased 847,000 891,000 Cost of goods available for sale 901,000 955,000 Ending inventory 64,000 55,000 Cost of goods sold $837,000 $900,000 Jim Holt, the bookkeeper, made two errors  (1) 2018 ending inventory was overstated by $3,000  (2) 2019 ending inventory was understated by $19,000  Instructions Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed below  Also indicate if the amounts are overstated (O) or understated (U)  2018 2019 Overstated  Over  Amount Understated Amount Under Total assets $                  $                  Stockholder's equity $                  $                  Cost of goods sold $                  $                  Net income $                  $

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		2018				2019
			Overstated/				Over/
	Amount		Understated		Amount		Under
Total assets	$_________			_______	$_________			_______
Stockholder's equity	$_________			_______	$_________			_______
Cost of goods sold	$_________			_______	$_________			_______
Net income	$_________			_______	$_________			_______

Question

Empire Co. reported cost of goods sold as follows: 2018 2019 Beginning inventory $ 54,000 $ 64,000 Cost of goods purchased 847,000 891,000 Cost of

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		2018		2019
Beginning inventory	$ 54,000		$ 64,000
Cost of goods purchased	847,000		891,000
Cost of goods available for sale	901,000		955,000
Ending inventory	64,000		55,000
Cost of goods sold	$837,000		$900,000

(1)	2018 ending inventory was overstated by $3,000.
(2)	2019 ending inventory was understated by $19,000.