Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. nash jewelry reported the following income stateme

Nash Jewelry reported the following income statement data for a 2-year period. ...

80.2K

Verified Solution

Question

Accounting

Nash Jewelry reported the following income statement data for a 2-year period.

2019

2020

Sales revenue

HK$2,130,000

HK$2,540,000

Cost of goods sold

Beginning inventory

344,000

441,000

Cost of goods purchased

1,730,000

2,161,000

Cost of goods available for sale

2,074,000

2,602,000

Ending inventory

441,000

538,000

Cost of goods sold

1,633,000

2,064,000

Gross profit

HK$497,000

HK$476,000

Nash uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was understated HK$70,000.

A/ Prepare correct income statement data for the 2 years.

B/ What is the cumulative effect of the inventory error on total gross profit for the 2 years?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

A. What is the NPV of the following cash flows if the required rate of return...

Chemistry
1.2K views

4.3120 g KNO3, 1.2345 g of CuCl2*2H2O, and 0.5678 g of BaCl2*2H2O are used to prepare...

Psychology
1.2K views

What about the side of marriages that we often omit from our discussions? Saving all my...

Psychology
1.2K views

what were the primary causes which led to World War 1? Why were the world powers...

General Management
1.2K views

What are the major phases in the process improvement methodology?

Biology
1.2K views

The qualifications for U S president are O 30 years of age U S citizen...

Basic Math
1.2K views

An alphabetized list of publication information about the sources used in an APA formatted essay...

Calculus
1.2K views

Integrate f x y z 20xz over the region in the first octant x y...

Accounting
1.2K views

a contract can only have one performance obligation true or false

Accounting
1.2K views

The current sections of Teal Inc's balance sheets at December 31, 2024 and 2025, are...

Accounting
1.2K views

The following information is available for Happy Company as of June 30: June 30 general...

Accounting
1.2K views

Why is it 50000