$ $ For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 738, eee 281,000 1,260, eee 1,480, eee Year 2 968,000 $ 288,000 1,373,990 1,593,888 Year 3 803, eee 263,080 1,243, eee 1,258,888 Required: 1. For each key financial statement figure-a). (6). (C). and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Year 1 Year 2 Year 3 Cost of goods sold: Reported amount Adjustments for: 12/31 Year 1 error 12/31/Year 2 error $ 0 s S 0 Corrected amount Net income: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error S 0 $ S 0 Corrected amount Total current assets: Reported amount Adjustments for: 12/31/Year 1 error 12/31 Year 2 error S 0 s S 0 Corrected amount Equity: Reported amount Adjustments for: 12/31 Year 1 error 12/31 Year 2 error Corrected amount S 0 s S 0 Required Required 2 > Problem 5-6A (Algo) Analysis of Inventory errors LO A2 Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $63.000 and Year 2 ending inventory is overstated by $33,000 For Year Ended December 31 Year 1 Year 2 Year 3 (a) Cost of goods sold $ 738,800 $ 968,000 $ 893,880 (b) Net income 281, eae 288,000 263, eee (c) Total current assets 1,260,000 1,373,990 1,243, eee (d) Total equity 1,480, ese 1,593,000 1,258,888 Required: 1. For each key financial statement figure-(a). (b). (c) and (c) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the error in total net income for the combined three-year period resulting from the inventory errors? Error in total net income of three years
