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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company reported an
What amount should Company report as adjusted beginning Accumulated Profits and Losses on January 1, 2020?
- P370,000
- P232,000
- P300,000
- P400,000
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