Darlington Inc.reported the following amounts on their financial statements for Year 1,Year 2 and Year 3:

It was discovered early in Year 4 that the ending inventory at the end of Year 1 was overstated by $6,000 and the ending inventory at the end of Year 2 was understated by $2,500.The ending inventory at the end of Year 3 was correctly reported.
Required:
Ignoring income taxes,determine the correct amounts of cost of goods sold and net income for each of the three years and total assets at the end of each the three years and complete the table below.Show your work.

Supporting calculations:

Question

Darlington Inc.reported the following amounts on their financial statements for Year 1,Year 2 and Year 3:
 
  
It was discovered early in Year 4 that the ending inventory at the end of Year 1 was overstated by $6,000 and the ending inventory at the end of Year 2 was understated by $2,500.The ending inventory at the end of Year 3 was correctly reported.
Required:
Ignoring income taxes,determine the correct amounts of cost of goods sold and net income for each of the three years and total assets at the end of each the three years and complete the table below.Show your work.
  
Supporting calculations:

Quizplus · Accepted Answer

The Answer of Darlington Inc.reported the following amounts on their financial statements for Year 1,Year 2 and Year 3:
 
  
It was discovered early in Year 4 that the ending inventory at the end of Year 1 was overstated by $6,000 and the ending inventory at the end of Year 2 was understated by $2,500.The ending inventory at the end of Year 3 was correctly reported.
Required:
Ignoring income taxes,determine the correct amounts of cost of goods sold and net income for each of the three years and total assets at the end of each the three years and complete the table below.Show your work.
  
Supporting calculations: