Exercise 8-26 The net income per books of Blossom Company was determined without
ID: 2550118 • Letter: E
Question
Exercise 8-26 The net income per books of Blossom Company was determined without knowledge of the errors indicated below Net Income Error in Ending Year per Books 2012 2013 2014 2015 2016 2017 Inventory $51,400 53,400 55,360 57,400 59,300 61,250 Overstated $ 2,960 Overstated Understated 10,540 No error Understated 2,150 Overstated 8,520 7,750 Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors Errors in Inventories Net Income Overstatement Understatement Overstatement Understatement Corrected Net Year Per Books 2012 2013 2014 2015 2016 2017 Jan. 1 Jan. 1 Dec. 31 Dec. 31 Income $51,400 53,400 55,360 57,400 59,300 61,250 Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
Errors in inventories
Year
Net Income per book
Add
Over-
statement
Jan 1
Deduct
Over-
statement
Jan 1
Deduct
Over-
statement
Dec 31
Add
Over-
statement
Dec 31
Corrected Net Income
2012
$ 51400
2960
48440
2013
53400
2960
8520
47840
2014
55360
8520
10540
74420
2015
57400
10540
46860
2016
59300
2150
61450
2017
61250
2150
7750
51350
338110
330360
Errors in inventories
Year
Net Income per book
Add
Over-
statement
Jan 1
Deduct
Over-
statement
Jan 1
Deduct
Over-
statement
Dec 31
Add
Over-
statement
Dec 31
Corrected Net Income
2012
$ 51400
2960
48440
2013
53400
2960
8520
47840
2014
55360
8520
10540
74420
2015
57400
10540
46860
2016
59300
2150
61450
2017
61250
2150
7750
51350
338110
330360
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