E22-21B (Error Analysis) When the records of InterOne Corporation were reviewed at the close of 2015, the errors listed below were discovered. For each item indicate by a check mark in the appropriate column whether the error resulted in an overstatement,
mujionostevoE22-21B (Error Analysis) When the records of InterOne Corporation were reviewed at the close of 2015,
the errors listed below were discovered. For each item indicate by a check mark in the appropriate column whether the error resulted in an overstatement, an understatement, or had no effect on net income for the years 2014 and 2015.
Over- Under- No Over- Under- No
Item statement statement Effect statement statement Effect
1. Failure to record accrued
interest on investment in
bonds in 2014; that amount
was recorded when received
in 2015.
2. Failure to record accrued
salaries at the end of 2014.
3. An inventory shipment that
was shipped F.O.B. shipping
point was in transit over the
end of the year and omitted
from the 2014 ending
inventory.
4. Failure to reflect supplies
on hand on balance sheet
at end of 2015.
5. Failure to record the correct
amount of ending 2015
inventory. The amount was
overstated because of
consigned inventory on hand
was included.
- 9 years ago
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