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,

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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, 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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