Home / Questions / Navajo Company's financial statements show the following. The company recently discovered that i

Navajo Company's financial statements show the following. The company recently discovered that i

Navajo Companys financial statements show the following. The company recently discovered that in making physical counts of i2017 2018 2019 Cost of goods sold: Reported amount 12/31/2017 error 12/31/2018 error Adjustments for: S Corrected amount NetwhaL Is the enor otamet meomeor he combmed Error in total net income of three years

Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $57,000, and inventory on December 31, 2018, is overstated by $27,000. For Year Ended Decemberr 31 2817 2818 2819 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity $ 732,080 962,080 282,00e 797,eee 257.000 275,0e0 1,254,eee 1,394,080 1,237,eee 1,252,080 1,367,08e 1,587,08e Required: 1. For each key financial statement figure-(a). (b). (c). and (o) below-complete the table to show the adjustments necessary to correct the reported amounts. 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? 2017 2018 2019 Cost of goods sold: Reported amount 12/31/2017 error 12/31/2018 error Adjustments for: S Corrected amount Net income: Reported amount 12/31/2017 error 12/31/2018 error Adjustments for: 0S 0S Corrected amount Total current assets: Reported amount 12/31/2017 error 12/31/2018 error Adjustments for 0S 0S Corrected amount Equity: Reported amount Adjustments for: 12/31/2017 error 12/31/2018 error 0S 0S Corrected amount C whaL Is the enor otamet meomeor he combmed Error in total net income of three years

Apr 04 2020 Read more Less More

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