Sheffield Hardware Limited reported the following amounts for its cost of goods sold and Inventory:...
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Accounting
Sheffield Hardware Limited reported the following amounts for its cost of goods sold and Inventory:
Exercise 6-8 Sheffield Hardware Limited reported the following amounts for its cost of goods sold and Inventory: Cost of goods sold Ending inventory 2018 $169,500 36,800 2017 $155,100 30,400 Sheffield made two errors: (1) ending inventory for 2018 was overstated by $2,100 and (2) ending inventory for 2017 was understated by $4,000. Assume that neither error has been found or corrected. Calculate the correct ending inventory and cost of goods sold amounts for each year. 2018 2017 Ending inventory 34700 34400 $ Cost of goods sold 165500 151100 $ Describe the impact of the error on (1) cost of goods sold, (2) income before income tax, (3) assets, (4) liabilities, and (5) total shareholders' equity for each of the two years. 2018 2017 (1) Cost of goods sold $ $ (2) Income before income tax $ $ (3) Assets $ $ (4) Liabilities (5) Total shareholders' equity $
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