Ukraine Company, your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? Both accrued salaries payable a Question 2: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2023 as a result of the error? Retained earnings only Question 3: What would be the adjusting entry if the error is discovered in year 2022? [ Select] V [ Select ] Questic ntry if the error is discovered in year Some other answer 2023? Debit Retained Earnings, P 50,000; Credit Salaries expense, P 50,000. Questic ntry if the error is discovered in year 2024? Debit Accrued salaries payable, P 50,000; Credit - Salaries Expense, P 50,000 Debit - Salaries Expense, P 50,000; Credit Accrued salaries payable, P 50,000 « Previc Next

Ukraine Company, your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? Both accrued salaries payable a Question 2: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2023 as a result of the error? Retained earnings only Question 3: What would be the adjusting entry if the error is discovered in year 2022? [ Select] V [ Select ] Questic ntry if the error is discovered in year Some other answer 2023? Debit Retained Earnings, P 50,000; Credit Salaries expense, P 50,000. Questic ntry if the error is discovered in year 2024? Debit Accrued salaries payable, P 50,000; Credit - Salaries Expense, P 50,000 Debit - Salaries Expense, P 50,000; Credit Accrued salaries payable, P 50,000 « Previc Next

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 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

See similar textbooks

Similar questions

your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? Question 2: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2023 as a result of the error? Question 3: What would be the adjusting entry if the error is discovered in year 2022? Question 4: What would be the adjusting entry if the error is discovered in year 2023? Question 5: What would be the adjusting entry if the error is discovered in year 2024?
Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery of this error in 2020 prior to making its estimate of doubtful accounts, what correcting journal entry should Abrat make? Ignore income taxes.
In January 2021, Barton Enterprises discovered that none of the required salaries expense accruals at the end of the following periods were recorded: 2019 Accrued salaries should have been $20,000 2020: Accrued salaries should have been $40,000 Both years are closed. What correcting entry should be made in 2021 to correct these errors? OA Debit Credit Salaries payable Retained earnings OD OB. The errors are counterbalanced at the end of 2020 amd no correcting OC Debit 40.000 Retained earnings Salaries payable Retained earnings Salaries payable 20,000 Salanes expense Retained earnings Salaries payable Debit 20.000 Debit 40.000 20,000 entries are needed. Credit 40,000 Credit 20,000 Credit 20,000 20,000
Since it started its operations in 2019, Valdo Co. carried no allowance for doubtful accounts. Uncollectible receivables were expensed as written off and recoveries were credited to income as collected. On March 1, 2023(after the financial statements were issued), management recognized that Valdo accounting policy with respect to doubtful accounts was not correct, and determined that an allowance for doubtful accounts was necessary. Data for the five years follow: 2019 2020 2021 2022 2023 Credit sales 2,100,000 1,850,000 2,050,000 2,000,000 2,000,000 Accounts written off 20,000 40,000 130,000 22,000 113,000 The year-end balance of accounts receivable are as follows: December 31, 2022 - P1,000,000 December 31, 2023 P1,200,000 Recoveries 15,000 20,000 5,000 20,000 40,000 Bad debts are provided for as a percentage of sales. a) The percentage to be used to compute for the allowance for bad debts on December 31, 2023 would be b) How much would be the doubtful accounts expense for 2023? c)…
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
c. Assuming you have checked this account and have detected that client did not record an expense transaction of $60,000 for the accrued salary incurred in June 2020. The client also did not calculate and record the accrued annual leave expenses for the 2020 financial year at the amount of $30,000 - What management assertions are violated (i.e. at risk) - What would you do in relation to the personnel expenses account if you have determined that the issues detected all are errors (an unintentional mistake).
CPA Co.'s allowance for doubtful accounts was P1,000,000 at the end of 2021 and P900,000 at the end of 2020. For the year ended December 31, 2021, the entity reported doubtful accounts expense of P160,000 in the income statement. What amount was debited to the appropriate account to write off uncollectible accounts in 2021?
At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended 30 September 2021 the company wrote off accounts totaling P18,000 and recovered P5,000 of accounts written off, and at the end of the year, it is decided that the doubtful account expense should be P20,000. 56) How much is the balance of allowance for doubtful accounts on September 30,2021? a. 44,000 b. 30,000 During the year, Jantz Company made an entry to write off a P4,000 uncollectible account. Before this entry was made, the balance in accounts receivable was P80,000 and the balance in C. 62,000 d. None of these the allowance account was P4,500. 57)The net realizable value of accounts receivable after the write-off entry was a. P80,000. b. P79,500. Use the following information for the next two questions: A trial balance before adjustments included the following: c. P71,500. d. P75,500. Debit Credit Sales P425,000 Sales returns and allowance P14,000 53,000 Accounts receivable…
Milan Company reported pretax income of P 6,500,000 on December 31, 2021. During your audit, the following errors were revealed: Insurance premium covering the period from July 1, 2021 to July 1, 2022, amounting to P 200,000 was paid and recorded as expense on July 31, 2021. The client did not make any adjustment at year end. Advertising for December 2021, amounting to P 500,000, was recorded when payment was made in January 2022. Merchandise worth P 1,000,000 was purchased in 2021 and included in ending inventory. However, the purchase was recorded only in 2022. On November 1, 2021, the P 300,000 was received representing rent of an equipment applicable for six months. Upon receipt, the entire amount was credited to income account. A merchandise valued at P 1,500,000 was properly recorded as purchase at year-end. Since the merchandise was still at the port area, it was inadvertently omitted from the inventory on December 31, 2021. What is the corrected pretax income for the year…
Milan Company reported pretax income of P 6,500,000 on December 31, 2021. During your audit, the following errors were revealed: Insurance premium covering the period from July 1, 2021 to July 1, 2022, amounting to P 200,000 was paid and recorded as expense on July 31, 2021. The client did not make any adjustment at year end. Advertising for December 2021, amounting to P 500,000, was recorded when payment was made in January 2022. Merchandise worth P 1,000,000 was purchased in 2021 and included in ending inventory. However, the purchase was recorded only in 2022. On November 1, 2021, the P 300,000 was received representing rent of an equipment applicable for six months. Upon receipt, the entire amount was credited to income account. A merchandise valued at P 1,500,000 was properly recorded as purchase at year-end. Since the merchandise was still at the port area, it was inadvertently omitted from the inventory on December 31, 2021. What is the corrected pretax income for the year…
4) Accrued taxes payable of $150,000 were not recorded at December 31, 2020. Office supplies on hand of $95,000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause retained earnings at December 31, 2021 to be in error by what amount?
DI-TWO Corporation had the following accounts and their balances on December 31 before any adjustments: Sales P5,000,000 Accounts Receivable 600,000 Allowance for doubtful accounts 25,000