Prepare two schedules one indicating the corrected income, Ask an Expert

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a. The Z Company sold goods to the X Company FOB destination on 31^st December, 2011. The Z Company added the sale in net income. The amount was $25,000.

b. Ending inventory for 2011 was understated by $5,000.

c. Interest expense on bonds was understated for 2011 and 2012 by $1,800 every year.

d. Repair bills in the amount of $8,000 for 2011 and $9,000 for 2012 was incorrectly charged to the equipment account. The company uses straight-line depreciation for all assets and a 10 year life with no salvage value.

Required:

Prepare two schedules, one indicating the corrected income for 2011 and one for the corrected income for 2012.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9156025

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