Yoyo reported the following amounts in its financial statements:Financial Statement for Year Ended Dec. 31202020212022(a)...
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Accounting
Yoyo reported the following amounts in its financial statements:
Financial Statement for Year Ended Dec. 31
2020
2021
2022
(a) Cost of Goods Sold
$123,000
$202,000
$129,600
(b) Net Income
182,000
110,000
195,000
(c) Total Current Assets
728,000
702,000
747,000
(d) Retained Earnings
1,225,000
1,489,000
1,616,000
In making the physical counts of inventory, the following errors were made:
1. Inventory Errors:
Inventory on December 31, 2020: overstated $25,000
Inventory on December 31, 2021: understated $18,000
2. The warehouse had $15,000 of goods held on consignment (owned by a friend of the CEO of Yoyo) that was counted as part of 2022 ending inventory.
Required: For each of the preceding financial statement items—(a), (b), (c), and (d)—prepare a schedule  and show the adjustments that would have been necessary to correct the reported amounts.
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