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Please help me with the question attached. Thank you You are the newly hired controller of Maple Auto Supply (Maple). Maple is one of the
Please help me with the question attached. Thank you
You are the newly hired controller of Maple Auto Supply (Maple). Maple is one of the largest automotive parts manufacturer in North America. You are the newly hired controller and you are in the process of finalizing their 2020 financial statements. In reviewing the accounts, you noticed a few inventory related errors as outlined below: 1. The company reported the following selected amounts in its financial statements: Financial Statement for Year Ended Dec. 31 (a) Total Current Assets (b) Net Income (c) Shareholders' Equity 2019 745,200 1,250,000 2,280,850 2020 811,500 1,500,000 3,180,850 2. Maple uses the periodic inventory system for keeping its inventory records. During January 2021, the following errors were discovered: a. Inventory Counting Errors: i. Inventory on Dec. 31, 2019: overstated by $26,500 ii. Inventory on Dec. 31, 2020: understated by $32,800 b. Of purchases on account during January 2020, $18,000 were recorded as purchases in 2019. C. The warehouse had $12,500 of goods held on consignment (owned by a friend of the CEO of Maple) that was counted as part of 2019 ending inventory. Required: For each of the financial statement items noted above, prepare a schedule and show all the adjustments that would have been necessary to correct the reported amounts as shown above. You decided to prepare a chart to summary the effect of the error (see below) to determine the ending revised balance of the selected financial information. If there is no effect, indicate either $0 or NE; otherwise, no marks will be given. Please ignore the tax effect. 2019 $745,200 2020 $ 811,500 Total Current Assets Adjustment 2(a) (0) Adjustment 2(a)(ii) Adjustment 2(b) Adjustment 2(c.) Corrected $1,250,000 $1,500,000 Net Income Adjustment 2(a) (i) Adjustment 2(a)(ii) Adjustment 2(b) Adjustment 2c.) Corrected $2,280,850 $3,180,850 Shareholder's Equity Adjustment 2(a) (0) Adjustment 2(a) (ii) Adjustment 2(b) Adjustment 2c.) CorrectedStep by Step Solution
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