Exercise 8-26 Your answer is partially correct. Try again The net income per boo

Question

Exercise 8-26 Your answer is partially correct. Try again The net income per books of Bridgeport Company was determined without knowledge of the errors indicated below Net Income Error in Ending Inventory Year per Books 2012 2013 2014 2015 2016 2017 $48,800 50,890 52,810 54,840 56,640 58,620 Overstated $ 3,240 Overstated Understated 10,750 No error Understated 1,890 Overstated 8,900 7,450 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 Jan. 1 Jan. 1 Dec. 31 Dec. 31 Income 2012 $48,800 3000 47000 2013 50,890 3000 9000

Explanation / Answer

Add deduct dedcut add Net income overstate understate overstate understate correct per books 1-Jan 1-Jan 31-Dec 31-Dec net income year 2012 48,800 3,240 45,560 2013 50,890 3,240 8,900 45,230 2014 52,810 8,900 10,750 72,460 2015 54,840 10,750 44,090 2016 56,640 1,890 58,530 2017 58,620 1,890 7,450 49,280 322,600 315,150

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