Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2012, Missouri River Supply incorrectly counted its amount of $450,140. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2012, balance sheet of Missouri River Supply. ventory as $437,030 inste Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2012. Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount c. If uncorrected, what would be the effect of the error on the 2013 income statement? Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount 1000

Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2012, Missouri River Supply incorrectly counted its amount of $450,140. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 2012, balance sheet of Missouri River Supply. ventory as $437,030 inste Balance Sheet Items Understated/Overstated Amount Merchandise Inventory Current Assets Total Assets Owner's Equity b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2012. Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount c. If uncorrected, what would be the effect of the error on the 2013 income statement? Income Statement Items Cost of Merchandise Sold Gross Profit Net Income Overstated/Understated Amount 1000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 71BPSB

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