Problem
Shockley Co. reported the following amounts in its financial statements:
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Financial Statements for
Year Ended December
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2017
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2018
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2019
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(a)
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Cost of goods sold
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$ 740,000
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$ 872,000
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$ 795,000
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(b)
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Profit
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245,000
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300,000
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256,000
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(c)
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Total current assets
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1,205,000
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1,315,000
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1,150,000
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(d)
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Equity
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1,337,000
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1,480,000
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1,282,000
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In making the physical counts of inventory, the following errors were made:
• Inventory on December 31, 2017: understated $75,000
• Inventory on December 31, 2018: overstated $27,000
For each of the preceding financial statement items-(a), (b), (c), and (d)-prepare a schedule similar to the following and show the adjustments that would have been necessary to correct the reported amounts. (Negative answers should be indicated by a minus sign.)
I've attached the answer table. How do I calculate the adjustments?
Attachment:- Calculate-Table.rar