Absolute Corporation Income Statement For the year ended December 31, 2018 Sales 1,000,000 Cost of goods sold (600,000) Gross income 400,000 Operating expenses (150,000) 250,000 Net income he December 31, 2018 audit of the company's financial statements disclosed the following errors: • The December 31, 2018 inventory is understated by P31,000. Accrued expenses of P4,000 and prepaid expenses of P6,000 were not recognized in the company's books. Sales of P5,000 were not recorded until January 2019, although the goods were shipped in December 20 December 31 physical inventory. Purchases of P30,000 made in December 2018 were not recorded although the good were received and pro 31 physical inventory.

Absolute Corporation Income Statement For the year ended December 31, 2018 Sales 1,000,000 Cost of goods sold (600,000) Gross income 400,000 Operating expenses (150,000) 250,000 Net income he December 31, 2018 audit of the company's financial statements disclosed the following errors: • The December 31, 2018 inventory is understated by P31,000. Accrued expenses of P4,000 and prepaid expenses of P6,000 were not recognized in the company's books. Sales of P5,000 were not recorded until January 2019, although the goods were shipped in December 20 December 31 physical inventory. Purchases of P30,000 made in December 2018 were not recorded although the good were received and pro 31 physical inventory.

Name: PROBLEM 7The condensed income statement of ABSOLUTE Corporation for t
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Description: PROBLEM 7The condensed income statement of ABSOLUTE Corporation for the year ended December 31, 2018 is presented below:Absolute CorporationIncome StatementFor the year ended December 31, 2018Sales1,000,000Cost of goods sold(600,000)Gross income400,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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