Euler Company Made an Inventory Count on December 31, 2010

question 137

Short Answer

Euler Company made an inventory count on December 31, 2010. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, 2010, the effects of this error are

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Definitions:

Proportionate Consolidation Method

An accounting technique used for joint ventures, where an entity's share of each of the assets, liabilities, income, and expenses are combined line by line with similar items in the entity's financial statements.

Non-Controlling Interest (NCI)

It represents the equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Proportionate Consolidation Method

A method of accounting where a parent entity combines its share of the subsidiary's assets, liabilities, incomes, and expenses line by line into its financial statements.

Non-Controlling Interest (NCI)

A portion of the equity in a subsidiary not attributable, directly or indirectly, to a parent company, reflecting the minority shareholders' stake.