Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. effect of errors in physical inventory fonda motor

Effect of Errors in Physical Inventory Fonda Motorcycle Shop selis motorcycles, ATVs, and other related...

80.2K

Verified Solution

Question

Accounting

image
Effect of Errors in Physical Inventory Fonda Motorcycle Shop selis motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory an December 31, 20Y8, Fonda Motorcycle Shop incorrectiy counted its inventory as $215,230 instead of the correct amount of $206,620. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y8, balance sheet of Fonda Motorcycle Shop. 1/4 21723,63man Cengagenowr2 : Ovire leachng and iewring resoure from Cengage Leaming b. State the effect of the error on the income statement of Fonda Notorcycie shop for the year ended December 31, 20r8. c. If uncorrected, what would be the effect of the error on the 20Y9 income statement? d. If uncorrected, what would be the affect of the error on the Decernber 31, 20Y9, balance sheet? 1. The December 31,20Y9, balance sheet would be correct, since the 20Y8 inventory error reverses itself in 20y9. 2. The December 31, 20Y9, balance sheet would be incorrect, since the 20 Y8 inventory error understates the inventory in 20Y9. 3. The December 31,20Y9, balance sheet would be incorrect, since the 20YB inventory error overstates the inventory in 209

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Given the joint distribution from the previous example Employee 96 1 0 1 0 W

Basic Math
Q

I'm having trouble understanding the following code (a snippet of a code). What does it do?...

Programming
Q

Cone of Depression – determini ng the maximum pumping rate fo r a specified draw down. (+20) A consulting...

Civil Engineering
Q

Identify the cross section of the cone Assume objects are perpendicular if they appear so...

Geometry
Q

Write the point-slope form of the equation of the line satisfying each of the following...

Basic Math
Q

1 Simplify the expression completely cos sec 3 csc

Calculus
Q

6 6 points What is the end behavior of p x You may describe it...

Algebra
Q

Johnson Corporation began 2018 with inventory of 18,000 units of its only product. The units...

Accounting
Q

Question 5. Mulder Corporation's comparative balance sheets are presented below: Mulder's income of $8,000. Required:...

Accounting
Q

Swifty Company manufactures two products, Board 12 and Case 165. Swifty's overhead costs consist of...

Accounting
Q

The net present value technique measures the difference between the sum of all cash inflow...

Finance
Q

Yaross Company acquires 200 shares of Quigby Co. stock at $80/share. The investment is designated...

Finance