Company reported an Accumulated Profits and Losses balance of P300,000 at December 31, 2019. In June 2020, company discovered that merchandise costing P100,000 had not been included in inventory in its 2019 financial statements. Assume Company has 30% tax rate. What amount should Company report as adjusted beginning Accumulated Profits and Losses on January 1, 2020? P370,000 P232,000 P300,000 P400,000

Q: Volata Company began operations on January 1, 2023. In the second quarter of 2024, it adopted the…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: Assume that purchases were recorded correctly and that no correcting entries were made at December…

A: Errors are mistakes or omissions which are made by an accountant, intentionally or unintentionally,…

Q: How much is the cost of goods sold in 2019?

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Q: Whispering Enterprises reported cost of goods sold for 2020 of $1,515,400 and retained earnings of…

A: The error can be rectified by deducting an opening overstated inventory error to the cost of goods…

Q: Bonita Enterprises reported cost of goods sold for 2020 of $1,419,800 and retained earnings of…

A: Ending inventory is the amount of inventory that an entity has, in hand, at the end of the period.…

Q: DCI & Co. reported the following 2021 balances: January 1 P2,175,000 P375,000 December 31 P1,950,000…

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Q: e following errors were detected and were not yet corrected: ·        2017 ending inventory is…

A: Solution: Prepaid rant error is the only error which will effect 2019 net income.

Q: 2) Choice Clothing completed the following selected transactions during 2019 and 2020:

A:

Q: ,000; 2018 - P792,000. Cost of sales = 201 -ross profit 2019 - P330,000; 2018 - P328, er during…

A: Gross Profit Ratio =Gross profit /Net sales  gross profit Margin =Gross profit/Net sales ×100

Q: During 2021, Colombo Company changed its inventory costing method from FIFO to weighted average…

A: Inventory is one of the important current asset of the business. Regular management and valuation of…

Q: Wendy Corp. reported the following data for 2019. Total net sales -P4,000,000; Goods purchased –…

A: Cash basis is an accounting method that records all the cash transactions whether received or paid…

Q: during 2019. The change in gross profit due to change in cost price must be:

A: Gross profit % = Gross profit / Sales Gross profit is one of the operational performance indicators.…

Q: Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was…

A: Solution: Cost of goods available for sale = (110*$21) + (310*$25 + 310*$26 + 210*$29 + 110*$32) =…

Q: The change in gross profit due to change in cost price must be

A:

Q: (a) Compute the total effect of the errors on 2021 net income.

A: Accounting errors occur at the time of recording data by accounting professionals. This does not…

Q: $ 35,000 7,300 4,500 $ 23,200 5,800 $ 17,400 $ 37,000 8,100 4,900 $ 24,000 6,000 $ 18,000 $ 39,000…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

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A: What is the adjusting entry at the end of 2019? date account debit credit 31 December 2019…

Q: Required: Prepare a schedule showing the calculation of net income and earnings per share that…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

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A: LIFO is an accounting method used for valuing inventory based on last-in-first-out model. It is…

Q: Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019…

A: FIFO It is one of the inventory valuation method . Inventory that is  purchased earlier are sold…

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Q: 825.000 1.050 000 1.400 000

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A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in inventory…

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Q: 1. Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…

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Q: On January 1, 2018, Toups Inc. changed from FIFO to LIFO for income tax and external reporting…

A: The LIFO reserve can be defined as the amount by which inventory costs under FIFO exceeds inventory…