Question

British Columbia Institute of Technology FMGT 1100-Accounting 1 Fer eech of the independent events lated below uning a perpetual imventory systtem, analyae the impact the indicated tems at the end of the ornent vear by placing the appropriate code letter in the bou nder each tem Code O F mVENTORy cRRORS ANo ESTIMGA TION (1O Marks) nem is ovestated te is understated em is not affected Net Cost of NA Owner's Equity Goods Sold income Assets fvents The ending inventory in the previous period was overstated 2. A physical count of goods on hand at the end of the current year resulted in some goods being counted twice. 3. Goods purchased on account in December of the current year and shipped FOB destination were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31 Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31. 4. 5. The internal auditors discovered that the ending inventory in the previous period was understated $ 15,000 and that the ending inventory in the current period was overstated $ 25,000 12

Answer 1

Events	Assets	Owners Equity	Cost of goods sold	Net income
1	NA	NA	O	U
2	O	O	U	O
3	NA	U	O	U
4	U	U	O	U
5	O	O	U	O