Question
Shockley Co. reported the following amounts in its financial statements: Financial Statements for Year Ended December 2017 2018 2019 (a) Cost of goods sold $
Shockley Co. reported the following amounts in its financial statements:
| Financial Statements for Year Ended December | ||||
| 2017 | 2018 | 2019 | ||
| (a) | Cost of goods sold | $ 740,000 | $ 872,000 | $ 795,000 |
| (b) | Profit | 245,000 | 300,000 | 256,000 |
| (c) | Total current assets | 1,205,000 | 1,315,000 | 1,150,000 |
| (d) | Equity | 1,337,000 | 1,480,000 | 1,282,000 |
In making the physical counts of inventory, the following errors were made: ? Inventory on December 31, 2017: understated $75,000 ? Inventory on December 31, 2018: overstated $27,000 For each of the preceding financial statement items?(a), (b), (c), and (d)?prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts.(Negative answers should be indicated by a minus sign.)
I've attached the answer table. How do I calculate the adjustments?
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Called To Account Financial Frauds That Shaped The Accounting Profession
Authors: Paul M. Clikeman
3rd Edition
1138327085, 9781138327085
