Balance Sheet

Nybrostrand Company

Introduction

The focus of this paper would be on Nybrostrand Company in which Nybrostrand Company's a trial balance, Balance Sheet and income statement will be analyzed after certain adjustment to the inventory.

Discussion

Journal Entries

Date

Account

Debit

Credit

31-Dec-12

Inventory

$ 76, 500

 

31-Dec-12

COGS

$ 264, 500

 

31-Dec-12

Purchases  

 

$ 341, 000



Corrected COGS

31-Dec-12

Purchases 

$ 307, 000

31-Dec-12

Inventories

$ 34, 000

 

Balance - Closing

$ 273, 000

In the above case, we have increase inventory by $42,500 and have reduced Cost of goods sold by $42,500.The accounts that has been changes are Cost of Goods Sold and Inventory (Needles, 2012). Income statement would be as followed:

Income statement and ...