The net income per books of Carla Company was determined without knowledge of th

Question

The net income per books of Carla 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 $53,900 55,880 57,970 59,940 62,080 64,070 Overstated 2,930 Overstated Understated 10,220 No error Understated Overstated 9,050 1,820 7,610 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 Jan. 1 Jan. 1 Dec. 31 Dec. 31 Income $53,900 55,880 57,970 59,940 62,080 64,070 353840 2017

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 53,900 2,930 50,970 2013 55,880 2,930 9,050 49,760 2014 57,970 9,050 10,220 77,240 2015 59,940 10,220 49,720 2016 62,080 1,820 63,900 2017 64,070 1,820 7,610 54,640 353,840 346,230

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