Question
The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated below. Year Net Income per Books Error in
The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated below.
| Year | Net Income per Books | Error in Ending Inventory | ||||||
|---|---|---|---|---|---|---|---|---|
| 2015 | $50,000 | Overstated | $ 3,000 | |||||
| 2016 | 52,000 | Overstated | 9,000 | |||||
| 2017 | 54,000 | Understated | 11,000 | |||||
| 2018 | 56,000 | No error | ||||||
| 2019 | 58,000 | Understated | 2,000 | |||||
| 2020 | 60,000 | Overstated | 8,000 | |||||
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
(Please show the steps and how the numbers are calculated with the periodic formula)
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
IFRS edition volume 2
978-0470613474, 470613475, 978-0470616314
