During 2020, Company discovered that the ending inventories on its financial statements were incorrect by the following amounts: 2018 P120,000 2019 150,000 company uses the periodic system to ascertain year-end quantities that are converted to peso amounts using FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, how much would be the accumulated profits and losses of company at January 1, 2020? A. P150,000 overstated B. P30,000 overstated C. 0 D. P270,000 overstated
During 2020, Company discovered that the ending inventories on its financial statements were incorrect by the following amounts: 2018 P120,000 2019 150,000 company uses the periodic system to ascertain year-end quantities that are converted to peso amounts using FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, how much would be the accumulated profits and losses of company at January 1, 2020? A. P150,000 overstated B. P30,000 overstated C. 0 D. P270,000 overstated
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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During 2020, Company discovered that the ending inventories on its financial statements were incorrect by the following amounts:
2018 P120,000
2019 150,000
company uses the periodic system to ascertain year-end quantities that are converted to peso amounts using FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, how much would be the
A. P150,000 overstated
B. P30,000 overstated
C. 0
D. P270,000 overstated
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