For Each of the Following Independent Scenarios,indicate the Effect of the Error

question 37

Essay

For each of the following independent scenarios,indicate the effect of the error (if any)on:
i.2017 net income
ii.2018 net income
iii.2018 closing retained earnings
The company uses the periodic system of inventory and its fiscal year-end is
December 31.Ignore income tax effects.
a)Invoices in the amount of $42,000 for inventory received in December 2017 were not entered on the books in 2017.They were recorded as purchases in January 2018 when they were paid.The goods were counted in the 2017 inventory count and included in ending inventory on the 2017 financial statements.
b)Goods received on consignment amounting to $73,000 were included in the physical count of goods at the end of 2018 and included in ending inventory on the 2018 financial statements.
c)Your analysis of inventory indicates that inventory at the end of 2017 was overstated by $152,000 due to an inventory count error.Inventory at the end of 2018 was correctly stated.
d)Provide the journal entry in 2018 to correct the error for (a)to (c).

Recognize exceptions to the preexisting duty rule and their significance.

Comprehend the process and implications of mutual contract rescission.

Understand the principles of adequacy of consideration and how courts approach it.

Understand the concept and importance of integrating environmental concerns into strategic business planning.

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Definitions:

Psychopathic Disorder

a mental disorder characterized by enduring antisocial behavior, diminished empathy and remorse, and bold, disinhibited, and egotistical traits.

PTSD

Post-traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, nightmares, and flashbacks.

Munchausen-by-proxy Syndrome

A psychiatric disorder where a caretaker fabricates or induces illness in another person, typically a child, to gain attention or sympathy.

Munchausen Syndrome

A psychiatric disorder where a person repeatedly and deliberately acts as if they have a physical or mental illness when they are not really sick.