The following errors were discovered during examination of CHARLIE Company's financial records: • Year 2021 wages payable for P34,000 was not recorded Accrued vacation pay for the year 2021 for P62,500 was not recorded because the bookkeeper "never learned that she had to do it" Insurance for a 12-month period, purchased on November 1, 2021 was charged to expense in the amount of P37,200 because the "amount of the check is about the same every year".

The following errors were discovered during examination of CHARLIE Company's financial records: • Year 2021 wages payable for P34,000 was not recorded Accrued vacation pay for the year 2021 for P62,500 was not recorded because the bookkeeper "never learned that she had to do it" Insurance for a 12-month period, purchased on November 1, 2021 was charged to expense in the amount of P37,200 because the "amount of the check is about the same every year".

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 12RE: Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery...

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The following errors were discovered in the course of examination of the Kamuning Company's financial records: *Year 2020 wages payable for P34,000 was not recorded. *Accrued vacation pay for the year 2020 for P62,500 was not recorded because the bookkeeper "never learned that you had to do it". *Insurance for a 12-month period purchased on November 1, 2020 was charged to expense in the amount of P37,200 because "the amount of the check is about the same every year". What is the net effect of the above errors on the January 1, 2021 accumulated profits? A P127,500 over B P59,300 over P65,500 over P96,500 over
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