During 2018, wmc corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts:

2016 understated by $ 120,000
2017 overstated by 150,000
wmc uses the periodic inventory system and the fifo cost method.

required:
(a) determine the effect of 2016 errors on retained earnings at january 1, 2018, before any adjustments. (ignore income taxes.)
(b) determine the effect of 2017 errors on retained earnings at january 1, 2018, before any adjustments. (ignore income taxes.)
(c) prepare a journal entry to correct the error made in 2017.

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?

Mark knopf is an auditor who has been asked to provide an audit and financial statement certification for a company that is going public on the new york stock exchange. knopf wants to know his personal liability if the company provides him with inaccurate or false information. which of the following sources of law will him answer that question? a. the city ordinances where the company headquarters is located. b. the state constitution of the state where the company is incorporated. c. code of federal regulations. d. all of the above

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?