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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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 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?

  1. P370,000
  2. P232,000
  3. P300,000
  4. P400,000
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