The Accountant for the Bay Company Made an Error,which Understated

question 37

Essay

The accountant for the Bay Company made an error,which understated the ending inventory for 2015 by $7,000.Bay Company uses the periodic inventory system.Assuming that this error is not caught and corrected,indicate the effect of the error on each of the following items.Write U (understated),O (overstated)or N (not affected)next to each item.
a.2016 Beginning Inventory: _________
b.2016 Purchases: __________
c.2015 Goods Available for Sale: ________
d.2015 Net Income: ________
e.2015 Retained Earnings ending balance: __________
f.2015 Total Assets at end of year: ___________
g.2016 Net Income: _________
h.2016 Retained Earnings ending balance: _________
i.2015 Cost of Goods Sold: ___________
j.2015 Gross Margin: _________

Recognize the factors that lead to the classification of contracts as void, voidable, unenforceable, or illegal.

Distinguish between different types of contracts based on their legality and enforceability.

Identify the role of intention in forming a legally binding contract.

Understand the implications of domestic and commercial agreements on the presumption of legal intent.

---

Definitions:

Power and Control

Refers to the ability to influence or direct people's behavior or the course of events.

Group Development

The process through which a group evolves over time, typically moving through stages from forming to performing, with the aim of achieving effectiveness and cohesion.

Settlement Houses

Community centers located in urban areas that provide various services such as education and housing assistance, primarily to the poor.

Hull House

A settlement house founded by Jane Addams and Ellen Gates Starr in 1889 in Chicago, aimed at improving the lives of the immigrant poor.