Compute for the Accrual advertising expense in 2018
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Compute for the Accrual advertising expense in 2018
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- During your audit of the books of Antigua Corporation for the year ended December 31, 2021, you discovered the following errors during the years 2019, 2020 and 2021. Errors 2019 2020 2021 Understatement of ending inventory 25,000 30,000 Overstatement of ending inventory 16,000 Omission of the following: Prepaid insurance 7,500 10,000 Unearned rent income 8,000 Accrued salaries expense 12,000 10,000 Accrued interest revenue 2,000 3,000 Erroneous capitalization of machinery repairs 15,000 Overstatement of machinery depreciation 1,500 1,500 Erroneous charging to expense of equipment cost 25,000 Understatement of equipment depreciation 2,500 2,500 2,500 Net income for the year 1,500,000 2,000,000 2,250,000 Retained earnings at year-end 7,500,000 8,750,000 9,250,000 Machinery has an estimated useful life of 10 years while equipment is 5 years. REQUIRED: Compute the corrected balances of the…You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2021. Jan 1, 2021 Dec 31, 2021 Accounts Receivable 6,400,000 4,000,000 Unpaid Merchandise invoices ? 2,621,000 Accrued Wages 85,000 125,000 Advertising supplies inventory 35,000 75,000 Accrued advertising expense 14,250 40,000 Prepaid Insurance 25,000 0 Unexpired insurance 0 41,000 During the year: Amount collected from customers, P10,000,000 Total payments to suppliers of merchandise 13,618,000 Total payments to suppliers of merchandise of prior years 4,632,000 Salaries paid 3,050,000 Advertising paid which includes 40,000 applicable in 2022, 300,000 Insurance premium paid, P125,000 Questions: 1. Net Sales for 2021 2. Net purchases for 2021 3. Salaries expense for 2021 4. Advertising expense for 2021 5.Insurance expense for 2021During your audit of the books of Antigua Corporation for the year ended December 31, 2021, you discovered the following errors during the years 2019, 2020 and 2021. Errors 2019 2020 2021 Understatement of ending inventory 25,000 30,000 Overstatement of ending inventory 16,000 Omission of the following: Prepaid insurance 7,500 10,000 Unearned rent income 8,000 Accrued salaries expense 12,000 10,000 Accrued interest revenue 2,000 3,000 Erroneous capitalization of machinery repairs 15,000 Overstatement of machinery depreciation 1,500 1,500 Erroneous charging to expense of equipment cost 25,000 Understatement of equipment depreciation 2,500 2,500 2,500 Net income for the year 1,500,000 2,000,000 2,250,000 Retained earnings at year-end 7,500,000 8,750,000 9,250,000 Machinery has an estimated useful life of 10 years while equipment is 5 years. REQUIRED: Compute the corrected balances of the…
- 2.2. The following are sales, cost of sales, and inventory data of client, figures are in $ millions: YEAR 2018 SALE 178.4 COS 110.8 15.6 18.4 ОВ EB Requirements: 2020 192.8 108.4 19.2 29.6 2019 186.8 117.2 18.4 19.2 a) Assume that $10mil is considered material for audit planning purposes for 2020. Do any of the fluctuations in the gross margin as a percent of sales ratios indicate a possible material misstatement? b) List 3 logical causes of the changes in the gross margin as a percent of sales c) For each of the possible cause, list the further action for auditor to verify the causeUpon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. O 1,550,000 O 1,200,000 O 1.440,000 O 1.600,000PROBLEM: During your examination of the accounting books of South Sky Company for the year ended December 31, 2022 revealed the following errors: 1. Unrecorded unpaid salaries at the end of 2021 and 2022 were P 100,000 and P 140,000, respectively. 2. The following errors were discovered in the audit of inventory at December 31, 2021: (a) over footing, P 220.000: (b) Under extension, P 30,000. 3. Unexpired insurance of P 120,000 for the year 2023 was expensed in 2022. 4. Unrecorded interest receivable at the end of 2023, P 20,000. 5. The proceeds of P 220,000 from sale of a machinery with a cost of P 400,000 was credited to Miscellaneous Income on January 1, 2022. The machinery was 60% depreciated on the date of sale. Depreciation for 2022 was recorded at the rate of 10% The reported net income at the end of 2021 and 2022 were P 1.750,000 and P 2.000.000, respectively. QUESTIONS: 1. What is the correct net income for the year 2021? 2. What is the correct net income for the year 2022?
- The adjusted (audited) income statement of Alex Kwon Corp. shows a net income of P175,000 for the year ended December 31, 2020. Adjustments were made for the following errors: • December 31, 2019, inventory overstated by P22,500 • December 31, 2020, inventory understated by P37,500 • A P10,000 customer's deposit received in December 2020, was credited to sales in 2020. The goods were actually shipped in January 2021. What is the unadjusted net income of Alex Kwon Corp. for the year ended December 31, 2020? A. P234,000 B. P125,000 C. P170,000 D. P200,000Determine the following as a result of your audit: a. What is the cost of ending inventories as of December 31, 2023? b. What is the correct carrying value inventories reported in its December 31, 2023 Statement of Financial Position? c. What is the amount of loss on inventory write down reported in its profit or loss in 2023 assuming that the allowance for inventory write down has a beginning balance of P35,000.9999...last recheck You have completed the field work in connection with your audit of Carla Corporation for the year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31,2020 Dec. 31,2019 Increase or(Decrease) Cash $311,248 $333,760 ($22,512 ) Accounts receivable 525,755 395,360 130,395 Inventory 830,704 683,200 147,504 Prepaid expenses 13,440 8,960 4,480 Investment in subsidiary 123,760 0 123,760 Cash surrender value of life insurance 2,580 2,016 564 Machinery 231,840 212,800 19,040 Buildings 599,424 456,848 142,576 Land 58,800 58,800 0 Patents 77,280 71,680 5,600 Copyrights 44,800 56,000 (11,200 ) Bond discount and issue cost 5,042 0 5,042 $2,824,673 $2,279,424 $545,249…
- Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. Group of answer choices 1,600,000 1,200,000 1,440,000 1,550,000You are engaged in the audit of Kaya Co., a new client, on December 31,2018. You review the following accounts in the general ledger: Accounts Receivable Beg.Bal., P200,000 Sales 4,000,000 Total P4,200,000 Loan Receivable Loan granted to a customer, 1/1/2018 P3,600,000 P4,000,000 400,000 Total P4,000,000 P4,000,000 Unearned Interest Income orig. Fees Direct P11,520 Balance 288,480 Total P300,000 in 1/1/2018 P2,596,000 1,484,000 120,000 Accounts receivable Retained earnings b. Sales discount 2018 Loan receivable b. Loan receivable paid end uncollectible P4,200,000 Unearned interest income a. P2,720,000 b. P2,750,000 P300,000 Additional information: A. The beginning balance of the accounts receivable on January 1,2018 was net of the allowance for doubtful accounts in 2017 amounting to P20,000. One of the credits in the accounts receivable was made as a result of cash collections. When receivables were collected, the bookkeeper credited accounts receivable for the cash collected.…The following information were made available to you by Katz Corp. in line with your audit of its financial statements as of January 1 and for the period ended December 31, 2020: Sales P53,000,000 Purchases 32,000,000 Sales discount 2,000,000 Purchase discount 1,200,000 Sales returns and allowance 1,000,000 Purchase returns and allowance 800,000 Correction of merchandise inventory, beginning error, net of Income tax – credit 400,000 Merchandise Inventory, January 1 (adjusted) 3,400,000 Merchandise Inventory, December 31 3,500,000 Distribution costs 5,000,000 General and administrative expenses 4,000,000 Interest expense 2,000,000 Gain on early extinguishment of long-term debt 500,000 Foreign translation adjustment, net of income tax – credit 1,250,000 Revaluation surplus for the period, net of income tax 700,000 Unrealized loss on financial assets at fair value through other comprehensive income or losses, net of income tax 550,000 Investment income – equity method 3,000,000 Gain on…