The Accounts Have Been Adjus... | Chegg.com eBook Printm Effect of Errors in Physical Inventory Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2012, Missour River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2012, balance sheet of Missouri River Supply. Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2012. Income Statement Items Cost of Merchandise Sold Overstated/Understated Amount Gross Profit Net Income c. If uncorrected, what would be the effect of the error on the 20Y3 income statement? Income Statement Items Cost of Merchandise Sold Overstated/Understated Check My Work 3 more Check My Work uses remaining Amount atv A Previous Next eBook Sean Art Chegg.com Merchandise Inventory Current Assets Total Assets Print Rem bo your Phone v2.cengaganow.com DO Deck Cengage Owner's Equity b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2012. Income Statement Items Cost of Merchandise Sold Overstated/Understated Amount Gross Profit Net Income c. If uncorrected, what would be the effect of the error on the 2013 income statement? Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold Gross Profit Net Income d. If uncorrected, what would be the effect of the error on the December 31, 2013, balance sheet? 1. The December 31, 2013, balance sheet would be correct, since the 2012 inventory error reverses itself in 2013. 2. The December 31, 20Y3, balance sheet would be incorrect, since the 2012 inventory error overstates the beginning inventory in 2013. 3. The December 31, 2013, balance sheet would be incorrect, since the 2012 inventory error understates the beginning inventory in 2013 20 Check My Work 3 more Check My Work uses remaining. tv Previous Next