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Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the...

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Accounting

Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2016, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600.

Enter all amounts as positive numbers.

a. State the effect of the error on the December 31, 2016, balance sheet of Missouri River Supply.

Balance Sheet Items Understated / Overstated Amount
Merchandise Inventory Understated $??
Current Assets Understated $??
Total Assets Understated $??
Owner's Equity Understated $??

b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 2016.

Income Statement Items Overstated / Understated Amount
Cost of Merchandise Sold Overstated $??
Gross Profit Understated $??
Net Income Understated $??

c. If uncorrected, what would be the effect of the error on the 2017 income statement?

Income Statement Items Overstated / Understated Amount
Cost of Merchandise Sold Understated $ ??
Gross Profit Overstated $ ??
Net Income Overstated $ ??

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