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  • Shockley Co Reported The Following Amounts in Its Financial Statements in

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    Shockley Co. reported errors in inventory counts for 2014 and 2015. In 2014, inventory was understated by $70,000 and in 2015 it was overstated by $32,000. This resulted in a net understatement of income over the three year period due to the inventory errors not being corrected. The understatement of inventory in 2014 also led to an understatement of equity by $70,000 that year.

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    Shockley Co Reported the Following Amounts in Its Financial Statements In

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    Shockley Co. reported errors in inventory counts for 2014 and 2015. In 2014, inventory was understated by $70,000 and in 2015 it was overstated by $32,000. This resulted in a net understatement of income over the three year period due to the inventory errors not being corrected. The understatement of inventory in 2014 also led to an understatement of equity by $70,000 that year.

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    23 views1 page

    Shockley Co Reported The Following Amounts in Its Financial Statements in

    Uploaded by

    Taimur Technologist
    Shockley Co. reported errors in inventory counts for 2014 and 2015. In 2014, inventory was understated by $70,000 and in 2015 it was overstated by $32,000. This resulted in a net understatement of income over the three year period due to the inventory errors not being corrected. The understatement of inventory in 2014 also led to an understatement of equity by $70,000 that year.

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    © All Rights Reserved
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    Shockley Co reported the following amounts in its

    financial statements In #4382


    Shockley Co. reported the following amounts in its financial statements:In making the physical
    counts of inventory, the following errors were made:• Inventory on December 31, 2014:
    understated $70,000• Inventory on December 31, 2015: overstated $32,000Required:For each
    of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the
    following and show the adjustments that would have been necessary to correct the reported
    amounts.Analysis Component:What is the error in the aggregate net income for the three-year
    period that resulted from the inventory errors? Explain why this result occurs. Also explain why
    the understatement of inventory by $70,000 at the end of 2014 resulted in an understatement of
    equity by the same amount that year.View Solution:
    Shockley Co reported the following amounts in its financial statements In

    ANSWER
    http://paperinstant.com/downloads/shockley-co-reported-the-following-amounts-in-its-financial-
    statements-in/

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