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The following table contains descriptions of errors related to inventory accounted for under a periodic inventory recordkeeping system and for property plant & equipment You
The following table contains descriptions of errors related to inventory accounted for under a periodic inventory recordkeeping system and for property plant & equipment You need to show your work to determine whether income before taxes and the balance sheet, for both the current year and the following years, are overstated, understated, or unaffected by the error. tableError,tableThis YearCGStableThis YearEndingInventorytableNext YearCGStableNext YearEndingInventoryatableMerchandise purchased on account onDecember of the current year wasincluded in ending inventory. However, thepurchase was not recorded until next yearwhen the invoice was received from thevendorbtableEnding inventory of the current year wasunderstated because of an error in theinventory records.ctableGoods held on consignment wereinadvertently counted in the physicalinventorydtableA purchase shipped fob shipping point onDec this year. The purchase wasrecorded but not included in endinginventory count.etableThe cost of a depreciable asset is incorrectlyrecorded as an expense this year.ftableThe cost of repainting was added to theBuilding account this year.
The following table contains descriptions of errors related to inventory accounted for under a periodic inventory recordkeeping system and for property plant & equipment
You need to show your work to determine whether income before taxes and the balance sheet, for both the current year and the following years, are overstated, understated, or unaffected by the error.
tableError,tableThis YearCGStableThis YearEndingInventorytableNext YearCGStableNext YearEndingInventoryatableMerchandise purchased on account onDecember of the current year wasincluded in ending inventory. However, thepurchase was not recorded until next yearwhen the invoice was received from thevendorbtableEnding inventory of the current year wasunderstated because of an error in theinventory records.ctableGoods held on consignment wereinadvertently counted in the physicalinventorydtableA purchase shipped fob shipping point onDec this year. The purchase wasrecorded but not included in endinginventory count.etableThe cost of a depreciable asset is incorrectlyrecorded as an expense this year.ftableThe cost of repainting was added to theBuilding account this year.
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