​Carpets's books show the following data. In early 2020​,auditors found that the ending merchandise inventory for 2017was understated by $ 4,000and that the ending merchandise inventory for 2019 was overstated by $ 5,000.The ending merchandise inventory at December​ 31, 2018​,was correct. 2019 2018 2017Net Sales Revenue $212,000 $161,000 $169,000Cost of Goods Sold:Beginning Merchandise Inventory $20,000 $25,000 $44,000Net Cost of Purchases 134,000 95,000 80,000Cost of Goods Available for Sale 154,000 120,000 124,000Less: Ending Merchandise Inventory 30,000 20,000 25,000Cost of Goods Sold 124,000 100,000 99,000Gross Profit 88,000 61,000 70,000Operating Expenses 59,000 33,000 30,000Net Income $29,000 $28,000 $40,000Requirements:1. Prepare correct income statement of three years.2. State whether each years net income before your corrections is understand or overstated and indicate the amount of understatement or overstatement.

Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the container’s cost. they receive a refund when the container is returned. during 2018, deposits collected on containers shipped were $856,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at january 1, 2018, represented deposits of $587,000. in 2018, $811,000 was refunded and deposits forfeited were $41,000. required: 1. prepare the appropriate journal entries for the deposits received and returned during 2018. 2. determine the liability for refundable deposits to be reported on the december 31, 2018, balance sheet.

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.