Yoyo reported the following amounts in its financial statements:Financial Statement for Year Ended Dec. 31202020212022(a)...
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Accounting
Yoyo reported the following amounts in its financial statements:
Financial Statement for Year Ended Dec. 31 | |||
2020 | 2021 | 2022 | |
(a) Cost of Goods Sold | $123,000 | $202,000 | $129,600 |
(b) Net Income | 182,000 | 110,000 | 195,000 |
(c) Total Current Assets | 728,000 | 702,000 | 747,000 |
(d) Retained Earnings | 1,225,000 | 1,489,000 | 1,616,000 |
In making the physical counts of inventory, the following errors were made:
1. Inventory Errors:
Inventory on December 31, 2020: overstated $25,000
Inventory on December 31, 2021: understated $18,000
2. The warehouse had $15,000 of goods held on consignment (owned by a friend of the CEO of Yoyo) that was counted as part of 2022 ending inventory.
Required:
For each of the preceding financial statement items—(a), (b), (c), and (d)—prepare a schedule  and show the adjustments that would have been necessary to correct the reported amounts.
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