Question
(Inventory Errors) The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated. Year Net Income per Books Error
(Inventory Errors)
The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated.
| Year | Net Income per Books | Error in Ending Inventory | |
|---|---|---|---|
| 2012 | $50,000 | Overstated | $3,000 |
| 2013 | 52,000 | Overstated | 9,000 |
| 2014 | 54,000 | Understated | 11,000 |
| 2015 | 56,000 | No error |
|
| 2016 | 58,000 | Understated | 2,000 |
| 2017 | 60,000 | Overstated | 8,000 |
Instructions
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
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Insights Into The Effectiveness Of Internal Audit
Authors: Rainer Lenz
1st Edition
3659852414, 978-3659852411
