Inventory Errors Impact on Financials Exercise

Question # 00651043
Subject: Business
Due on: 12/09/2023
Posted On: 12/08/2023 11:46 PM
Tutorials: 1
Rating:
4.9/5
Question Dot Image

KU Inventory Errors Impact on Financials Exercise

You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements:

Inventory at 12/31/2022 was understated by $6,000.

Inventory at 12/31/2023 was overstated by $9,000.

  1. On 12/31/2023, inventory was purchased for $3,000. The company did not record the purchase until the inventory was paid for early in 2024. At that time, the purchase was recorded by a debit to purchases and a credit to cash.
  2. The company uses a periodic inventory system.
  3. Required:

Assuming that the errors were discovered after the 2023 financial statements were issued, analyze the effect of the errors on 2023 and 2022 cost of goods sold, net income, and retained earnings. (Ignore income taxes.)

Dot Image
Getsolution Posted By :
Questions: 15478 Tutorials: 15477
Tutorials for this Question

Inventory Errors Impact on Financials Exercise

Tutorial # 00649928
Posted On: 12/08/2023 11:47 PM
Feedback Score: Not rated yet!
Purchased By: 2
Getsolution
Posted By:
Questions:
15478
Tutorials:
15477
Report this Tutorial as Inappropriate
Tutorial Preview
The solution of Inventory Errors Impact on Financials Exercise...
Attachments
Inventory_Errors_Impact_on_Financials_Exercise.ZIP (18.96 KB)

Great! We have found the solution of this question!

Related Questions
Strayer ACC556 Week 6 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 6 Discussion - Budgeting Please respond to the following: Compare and contrast a flexible budget and a static budget. Recommend which budget woul …
Strayer ACC556 Week 5 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 5 Discussion Accounts Receivable Management Please respond to the following: Examine the steps a company can take to evaluate the liquidity of re …
Strayer ACC556 Week 4 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 4 Discussion Capital Investments Please respond to the following: Analyze the pros and cons of identifying the potential intangible benefits of i …
Strayer ACC556 Week 3 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 3 Discussion Internal Controls Please respond to the following: Identify and discuss the six principles of control activities. Suggest the two mo …
Strayer ACC556 Week 2 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 2 Discussion Differences in Income Statements Please respond to the following: Distinguish between the income statement of a service company and a …
Strayer ACC556 Week 1 Discussion Latest 2024
ACC556 Financial Accounting for Mgrs Week 1 Discussion Financial Statements Please respond to the following: Introduce yourself to your peers by sharing something unique about your backgro …
Accounting Quiz - check The QM/ATR rule applies to which types
Argosy University Accounting Quiz Questions Question Title *4. (check The QM/ATR rule applies to which types of transactions? all that apply)  HELOCs  Closed-end consumer credit …
Accounting - Explore and apply the basic multidimensional
Accounting Question Explore and apply the basic multidimensional analysis by linking multiple cubes. Requirements: Create visualizations to answer the following questions. 1) Compute your tea …
Accounting Research Case - prepare an Accounting Research Memo
Accounting Research Case Required: prepare an Accounting Research Memo to the Heavenly Travel, Inc. 2022 Audit File. Since the events indicate that the carrying amount of the asset group may not be …
Colorado ACC300 Accounting Cycle and Shareholders Value
ACC 300 CSU Accounting Cycle and Shareholders Value Questions The Accounting Cycle and Stockholders’ Equity Analysis Part 3 ASSUME YOU ARE THE CHIEF ACCOUNTANT MAKING A PRESENTATION DUR …
Recent Questions
Social work process evalution - Agency Context: Briefly describe
Social work process evalution The purpose of this assignment is to prepare a proposal for a process or outcome evaluation thatcould be implemented at your placement or place of employment (if you w …
Psychology - Why Zebras Don’t Get Ulcers by Robert Sapolsky
Psychology Question Purpose The purpose of this assignment is to increase your knowledge of health psychology concepts beyond the textbook. It also designed to utilize your critical thinking ski …
PSY605 ITESM Erickson's Late Adulthood Analytical Review
PSY 605 ITESM Erickson's Late Adulthood Analytical Review PSY 605 FINAL Integrating the Field of Developmental Psychology: A Review of the Literature Prior to beginning work on this assig …
PSY225 - Survey, What were your five highest strengths
psy/225 survey, What were your five highest strengths Take the VIA© survey. Using your results, write a 350- to 700-word paper covering the following points: What were …
Ashford PSY699 Resources for the Integrative Literature Review
PSY699 Ashford University Resources for the Integrative Literature Review Prior to beginning work on this written assignment, be sure to carefully review the instructions for the Final Assignment, …
PSY630 Variations in Drug Response - Ms. Jones is a 30-year-old
Variations in Drug Response PSY630 Using the knowledge you gained from the readings, evaluate how a typical drug, when orally administered, may be handled differently by these two patients: …
Technology is ubiquitous; it is everywhere. Since humans
provide insights into how technology has changed the way people interact Technology is ubiquitous; it is everywhere. Since humans are social creatures that need to interact, cell phones and social …
SOC401 - A strong cover letter is an accompaniment
SOC401 Crafting the Cover Letter A strong cover letter is an accompaniment to a strong résumé and is often the key to securing an interview. While a resume goes through ATS programs, …
SOC401 Identity and Social Change
soc401 Identity and Social Change First, turn to the Needs-Based Assessments and Community Outreach discussion from Week 2, and choose your community and issue or a colleague’s community and …
SOC401 Civic Engagement, Volunteerism, and Community Outreach
SOC401 Civic Engagement, Volunteerism, and Community Outreach Share your previous experiences of civic engagement or volunteering. Describe the identity groups and communities that were supported b …