Question

Fonda Motorcycle he $167.120 r edes, ATVS, thered of the correct amount of $160,630 es d e Oure the of h aventory on December 31, 2011, Fonda incorrectly counted its S e cts of the Balance Sheets the December 31, 2011, balance sheet of Fonda Motorcycle Shop Overstad/ stated Inventory State the act of the c o rondatore Shop for the year ended December 31, 2011 Income Statement les Cost of Goods Sold Overstated / derstated Cost of Goods Sold Understated / Overstated Amount GoPro

Answer 1

Correct inventory = $160,630

Incorrect inventory = $167,320

Overstated inventory = Incorrect inventory - Correct inventory

= 167,320-160,630

= $6,690

a.

Balance Sheet Items	Overstated/Understated	Amount
Inventory	Overstated	$6,690
Current Assets	Overstated	$6,690
Total Assets	Overstated	$6,690
Stockholders Equity	Overstated	$6,690

b.

Income Statement Items	Overstated/Understated	Amount
Cost of Goods Sold	Understated	$6,690
Gross Profit	Overstated	$6,690
Net Income	Overstated	$6,690

c.

Income Statement Items	Overstated/Understated	Amount
Cost of Goods Sold	Overstated	$6,690
Gross Profit	Understated	$6,690
Net Income	Understated	$6,690

Kindly comment if you need further assistance.

Thanks‼!