Bonita, Inc. is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows: Ending inventory Depreciation expense 2021 O $6000 overstated O $15750 understated 0 $0 O $6000 understated $10200 overstated $5550 understated 2020 $23500 overstated $17500 overstated Assume that no correcting entries were made at December 31, 2020, or December 31, 2021 and that no additional errors occurred in 2022. Ignoring income taxes, by how much will working capital at December 31, 2022 be overstated or understated?

BE6-9 Creole Company reports net income of $90,000 in 2002. Ending inventory was understated by $7,000. What is the correct net income for 2002? What effect, if any, will this error have on total assets and owner's equity reported in the balance sheet at December 31, 2002?

Bonita, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2025. The increase in the prior year's income before taxes is $1,300,500. The tax rate is 20%. Prepare Bonita's 2025 journal entry to record the change in accounting principle. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Credit

c. Assume the same facts as above and in part (b), except that Washi’s net income included a loss on discontinued operations of $33,000 (net of tax). Prepare the journal entries necessary to record Flounder’s equity in the net income of Washi for 2023. Ignore income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit enter an account title to record investment income and loss enter a debit amount enter a credit amount enter an account title to record investment income and loss enter a debit amount enter a credit amount enter an account title to record investment income and loss enter a debit amount enter a credit amount (To record investment income and loss)     enter an account title to record depreciation…

ії. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 201141 Ending Inventory Depreciation Expense 2010 $3,000 overstated S8,000 overstated $2,000 understated| $6,000 overstated Assume that no correcting entries were made at December 31, 2010. Ignoring income taxes, by how much will retained earnings at December 31, 2011 be overstated or understated? a. $1,000 understated b. $5,000 overstated c. S5,000 understated d. $9,000 understated

Dr. Drake Ramoray is a calendar-year corporation whose financial statements for 2020 and 2021 included errors as follows: Year Ending Inventory Sales Revenue 2020 $40,000 understated $25,000 understated 2021 24,000 understated 37,000 understated Assume that purchases were recorded correctly and that have been no correcting entries made to either 2020, or 2021. It is now January 1, 2022, and suppose the books are closed for 2020, but not 2021. Ignoring income taxes, by how much should Drake directly adjust retained earnings in their correcting journal entry? O $15,000 decrease O $38,000 decrease $15,000 increase O $65,000 increase O $86,000 increase O $126,000 decrease O None of the given answers O $38,000 increase O $126,000 increase O $9,000 increase

You have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2020. You discover the following situations. 1. Depreciation of $3,200 for 2020 on delivery vehicles was not recorded. 2. The physical inventory count on December 31, 2019, improperly excluded merchandise costing $19,000 that had been temporarily stored in a public warehouse. Zarle uses a periodic inventory system. 3. A collection of $5,600 on account from a customer received on December 31, 2020, was not recorded until January 2, 2021. 4. In 2020, the company sold for $3,700 fully depreciated equipment that originally cost $25,000. The company credited the proceeds from the sale to the Equipment account. 5. During November 2020, a competitor company filed a patent-infringement suit against Zarle claiming damages of $220,000. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is…

Using direct method, ZARA company decided on December 2, 2019 to write-off 370$ that owned to HH company Ltd. The journal entry to record this transaction is O a. Bad debt expense 370 Account receivable 370 O b. Bad debt expense 370 Cash 370 Oc Bad debt expense 370 C. Allowance for doubtful account 370 O d. Cash370 Bad debt expense 370

The following errors were discovered in the preparation of the financial statements of Uni-Focus Company for the year ended November 30, 2021. Goods held on consignment from Tri-Facet Ltd. with a cost of $17,940 were incorrectly included in Uni-Focus Company’s inventory on November 30, 2020.  The goods were not sold during the 2021 year and were returned to Tri-Facet.  The goods were not included in Uni-Focus Company’s November 30, 2021 inventory count.  Assume that Uni-Focus Company’s Inventory account accurately reflects the results of the November 30, 2021 count. During the first week of December 2017, office furniture was purchased for $18,505.  The entire purchase was recorded with a debit to Office Supplies Expense, and a credit to Cash.  Uni-Focus expected to keep the furniture for 10 years and sell it for $675 at the end of the asset’s useful life.  Uni-Focus Company uses the straight-line method of depreciation for furniture. On December 1, 2019, Uni-Focus Company paid an…

During year 3, Mayorca Corp. decided to change from the FIFOmethod of inventory valuation to the  weighted-average method. Inventory balances under each method were as follows:   FIFO                           Weighted-average January 1, year 3                                 P71,000                            P77,000 December 31, year 3                             79,000                              83,000   Orca’s income tax rate is 30%.   In its year 3 financial statements, what amount should Mayorca report as the gain or loss on the cumulative effect of this accounting change?