James Supply Company Reports Net Income of $120000 in 2016

question 198

Essay

James Supply Company reports net income of $120000 in 2016. The ending inventory did not include goods valued at $9000 that James had consigned to Eli's Gift Shop.
(1) What is the correct net income for 2016?
(2) What impact will this error have on the balance sheet at 12/31/16?

Explain the significance of developing strong interpersonal relationships within the workplace for effective management.

Discuss the process and importance of measuring work performance and taking corrective actions.

Understand the continual need for personal and professional development for career success.

Comprehend the necessity of teamwork and effective communication in achieving organizational goals.

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Definitions:

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, every three months.

Annual Dividend

A payment made by a corporation to its shareholders, usually on an annual basis, from its profits.

Preferred Stock

Preferred stockholders received dividends before common stockholders.

Common Stock

A type of stock where the stockholders receive dividends only when the board of directors elects to issue dividends.