Mischa Company Has a Current Inventory Balance of $864,200

question 40

Essay

Mischa Company has a current inventory balance of $864,200.
Instructions
Prepare the ending inventory adjustment required assuming a year-end inventory account revealed the following balance:
a. $862,500
b. $922,600
c. $864,200

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Definitions:

Unrealised

Refers to profits or losses that have occurred on paper due to changes in value but have not been realized through an actual transaction.

Consolidation

The process of combining the financial statements of separate but related entities to present as those of a single economic entity.

NCI

Non-Controlling Interest, a minority shareholding in a subsidiary not owned by the parent company, reflecting those shareholders' claim on assets and earnings.

Disclosure

The provision of financial and other significant information about a company to its stakeholders, typically through financial statements and notes, to facilitate informed decision-making.