Partnership books showed net profit for the six months ended December 31, 2014 was P180,000. However, upon review of partnership records, the following errors were disclosed: a. Accrued expenses not recorded at year end- P6,000 b. Income received in advance, not adjusted- P10,000 c. Unused portion of 1 year insurance paid- P5,000. d. Income already earned, not yet recorded- P15,000. How much is the adjusted profits before profit distribution? a. 180,000 b. 194,000 c. 195,000 d. 184,000

Partnership books showed net profit for the six months ended December 31, 2014 was P180,000. However, upon review of partnership records, the following errors were disclosed: a. Accrued expenses not recorded at year end- P6,000 b. Income received in advance, not adjusted- P10,000 c. Unused portion of 1 year insurance paid- P5,000. d. Income already earned, not yet recorded- P15,000. How much is the adjusted profits before profit distribution? a. 180,000 b. 194,000 c. 195,000 d. 184,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PA

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