Grouper Hardware Limited reported the following amounts for its cost of goods sold and Inventory:

		2018		2017
Cost of goods sold		$168,500		$153,700
Ending inventory		36,900		30,300

Grouper made two errors: (1) ending inventory for 2018 was overstated by $2,200 and (2) ending inventory for 2017 was understated by $4,300. Assume that neither error has been found or corrected.

Part 1

Calculate the correct ending inventory and cost of goods sold amounts for each year.

		2018		2017
Ending inventory		$enter a dollar amount		$enter a dollar amount
Cost of goods sold		$enter a dollar amount		$enter a dollar amount

Describe the impact of the error on (1) cost of goods sold, (2) income before income tax, (3) assets, (4) liabilities, and (5) total shareholders equity for each of the two years.

			2018				2017
(1)	Cost of goods sold		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount
(2)	Income before income tax		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount
(3)	Assets		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount
(4)	Liabilities		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount
(5)	Total shareholders' equity		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount		select the impact of the error OverstatedUnderstatedWill not effect		$enter a dollar amount