Question
Use the following information for the next five (5) questions: Havana Brown Company reported the following net income figures without knowledge of inventory errors. Year
Use the following information for the next five (5) questions:
Havana Brown Company reported the following net income figures without knowledge of inventory errors.
Year Reported Net Income Error in Ending Inventory
2019 500,000 Overstated 50,000
2020 520,000 Overstated 90,000
2021 540,000 Understated 110,000
2022 560,000 No error
2023 580,000 Understated 20,000
2024 600,000 Overstated 100,000
Questions: Based on the above and the result of your audit, compute the corrected profit for the following year:
36) 2019
A.550,000 B. 450,000 C. 360,000 D. 500,000
37) 2020
A.480,000 B. 570,000 C. 560,000 D. 430,000
38) 2021
A.740,000 B. 650,000 C. 630,000 D. 560,000
39) 2022
A.670,000 B. 650,000 C. 470,000 D. 450,000
40) 2023
A.600,000 B. 580,000 C. 560,000 D. 500,000
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Fundamental Accounting Principles Volume 2
Authors: John Wild, Ken Shaw, Barbara Chiappetta
21st Edition
0077716663, 978-0077716660
