The net income per books of Linda Patrick Company was determined without knowled
ID: 2446339 • Letter: T
Question
The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated below.
Year
Net Income
per Books
Error in Ending
Inventory
Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.
Errors in Inventories
Year
Net Income
Per Books
Add Overstatement
Jan. 1
Deduct Understatement
Jan. 1
Deduct Overstatement
Dec. 31
Add Understatement
Dec. 31
Corrected Net
Income
Year
Net Income
per Books
Error in Ending
Inventory
Explanation / Answer
Year Net Income Ending inv Add Overst Jan 1 Deduct Underst Jan1 Deduct Over Dec31 Add under st Dec 31 Corrected Net Income 2009 51,100.00 Overstated 3,770.00 (3,770.00) 47,330.00 2010 53,150.00 Overstated 9,270.00 3,770.00 (9,270.00) 47,650.00 2011 55,240.00 Understated 12,180.00 9,270.00 12,180.00 76,690.00 2012 57,610.00 No Error (12,180.00) 45,430.00 2013 59,810.00 Understated 2,030.00 2,030.00 61,840.00 2014 62,260.00 Overstated 8,200.00 (2,030.00) (8,200.00) 52,030.00
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