You are the newly hired controller of Maple Auto Supply (Maple). Maple is one of the largest automotive parts manufacturer in North America. You are the newly hired controller and you are in the process of finalizing their 2020 financial statements. In reviewing the accounts, you noticed a few inventory related errors as outlined below:

1. The company reported the following selected amounts in its financial statements:

	Financial Statement for Year Ended Dec. 31
	2019	2020
(a) Total Current Assets	745,200	811,500
(b) Net Income	1,250,000	1,500,000
(c) Shareholders Equity	2,280,850	3,180,850

1. Maple uses the periodic inventory system for keeping its inventory records. During January 2021, the following errors were discovered:

1. Inventory Counting Errors:

1. Inventory on Dec. 31, 2019: overstated by $26,500
2. Inventory on Dec. 31, 2020: understated by $32,800

1. Of purchases on account during January 2020, $18,000 were recorded as purchases in 2019.

1. The warehouse had $12,500 of goods held on consignment (owned by a friend of the CEO of Maple) that was counted as part of 2019 ending inventory.

Required:

For each of the financial statement items noted above, prepare a schedule and show all the adjustments that would have been necessary to correct the reported amounts as shown above. You decided to prepare a chart to summary the effect of the error (see below) to determine the ending revised balance of the selected financial information. If there is no effect, indicate either $0 or NE; otherwise, no marks will be given. Please ignore the tax effect.

	2019	2020
Total Current Assets	$745,200	$ 811,500
Adjustment 2(a) (i)
Adjustment 2(a) (ii)
Adjustment 2(b)
Adjustment 2(c.)
Corrected
Net Income	$1,250,000	$1,500,000
Adjustment 2(a) (i)
Adjustment 2(a) (ii)
Adjustment 2(b)
Adjustment 2(c.)
Corrected
Shareholder's Equity	$2,280,850	$3,180,850
Adjustment 2(a) (i)
Adjustment 2(a) (ii)
Adjustment 2(b)
Adjustment 2(c.)
Corrected