Solved

Randwick Ltd Has a Year-End of 30 June 2009

Question 50

Short Answer

Randwick Ltd has a year-end of 30 June 2009. During the year the following errors were discovereD.
-Merchandise inventory at the factory had been understated by $44,000.
-Goods on consignment from a supplier for $13,000 were included in inventory at the shops.
-Physical inventory for one warehouse had a shortage of $58,000
What is the net effect of above errors in the income statement and balance sheet (inventory) accounts of Randwick Ltd?
Randwick Ltd has a year-end of 30 June 2009. During the year the following errors were discovereD. -Merchandise inventory at the factory had been understated by $44,000. -Goods on consignment from a supplier for $13,000 were included in inventory at the shops. -Physical inventory for one warehouse had a shortage of $58,000 What is the net effect of above errors in the income statement and balance sheet (inventory) accounts of Randwick Ltd?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: AASB 102 provides that not-for-profit entities:<br>A) Must

Q13: The valuation of inventories may be on

Q15: The two main methods for dealing with

Q19: Standard costs may be used to arrive

Q19: AASB 102 on inventories does not apply

Q26: Under AASB 102 revaluations are permitteD.<br>A) Only

Q33: Use of the LIFO method has been

Q47: Bondi Ltd is a small sports shop.

Q55: Rectangle Ltd manufactures cardboard boxes for a

Q69: Some biological assets may be covered by