Due to the error in the recording of correct amount of inventory the ,at the end of Madison river supply balance sheet , the inventory , current assets, total assets and shareholders equity would be understated by $10,400.
Now due to the error in recording correct amount of inventory , in the balance sheet it will be shown as understated by $10,400 ( $555,400 - $5454,000 ) , now because of this the current assets would become understated by the same amount as inventory comes under the current assets.
Since current assets are understated , the total assets of the company would also be understated and so do shareholders equity as the net income has decreased because of the increase in cost of goods sold.
Answer:
Assets increased by $60,000
Explanation:
Accounting information : Stockholders' Equity = Assets - Liabilities
Assets = Stockholders' Equity + Liabilities
$105,000 - $45,000 = $60,000
Assets increased by $60,000
Answer: Puedes escribir en español?
Explanation: No hablo ingles