e following errors were detected and were not yet corrected: · 2017 ending inventory is overstated by P6000. · 2018 beginning inventory is overstated by P6000. · A prepayment for rent for three years amounting to P9000 was expensed in full in 2018.
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Sunflower Co. reported net income of P150,000, P180,000, and P220,000 for the years 2017, 2018, and 2019. However, the following errors were detected and were not yet corrected:
· 2017 ending inventory is overstated by P6000.
· 2018 beginning inventory is overstated by P6000.
· A prepayment for rent for three years amounting to P9000 was expensed in full in 2018.
How much is the correct 2019 net income?
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- At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
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- Roxas Company reported the following net income: 2018 - P1,750,000 2019 - P2,000,000 An examination of the accounting records for the year ended December 31, 2019 revealed that several errors were made. The following errors were discovered: • The footings and extensions showed that the inventory on December 31, 2018 was overstated by P190,000. • Prepaid insurance of P120,000 applicable to 2020 was expensed in 2019. • Interest receivable of P20,000 was not recorded on December 31, 2019. . On January 1, 2019, an equipment costing P400,000 was sold for P220,000. At the date of sale, the equipment had accumulated depreciation of P240,000. • The cash received was recorded as miscellaneous income in 2019. . In addition, depreciation was recorded for the equipment for 2019 at the rate of 10%. Required: 1. Prepare worksheet showing corrected net income for 2018 and 2019. 2. Prepare adjusting entries on December 31, 2019 assuming (a) books are still open and (b) books are already closed.While examining the December 31, 2019 financial statements ofGoogle Company, the following errors were discovered. Ending inventory was overstated by P10,000. Beginning inventory was understated by P4,000. P100,000 worth of merchandise was purchased and receivedtowards the end of 2019 and included in inventory.Thepurchase was recorded in 2020 when payment for the goods wasmade. Profit reported in the 2019 profit and loss before adjustment for thegiven items is P600,000. What is the adjusted profit for the year ended December 31, 2019? a.P714,000 b.P686,000 C.P494,000 d.P486,000During 2021, WMC Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: 2019 understated by $ 142,000 2020 overstated by 194,000 WMC uses the periodic inventory system and the FIFO cost method. Required:1-a. Determine the effect of 2019 errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.)1-b. Determine the effect of 2020 errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.)2. Prepare a journal entry to correct the error in 2021.3. Will WMC account for the error (a) retrospectively or (b) prospectively? a. & b. are attached images c. & d. are below (they are short please please answer) c. Record correction of error journal entry form. d. Will WMC account for the error (a) retrospectively or (b) prospectively?
- During the year ended December 31, 2021, Samar Company revealed the following events: a) a counting error relating to inventory on December 31, 2020 was discovered. This required a reduction in the carrying amount of inventory on that date of P2,000,000. b) the provision for uncollectible accounts receivable on December 31, 2020 wasP500,000. During 2021, an amount of P800,000 was written off the from the December 31, 2020 accounts receivable. What pretax adjustment is required to restate retained earnings on January 1, 2021?For each of the following independent scenarios, indicate the effect of the error (if any) on: i. 2019 net income; ii. 2020 net income; and iii. 2020 closing retained earnings. company uses the periodic system of inventory and its fiscal year-end is December 31. Ignore income tax effects. Consider each of the following independent The scenarios: a. Your analysis of inventory indicates that inventory at the end of 2019 was overstated by $27,000 due to an inventory count error. Inventory at the end of 20 13 was correctly stated. b. Invoices in the amount of $107,000 for inventory received in December 2019 were not entered on the books in 2019. They were recorded as purchases in January 2020 when they were paid. The goods were counted in the 2019 inventory count and included in ending inventory on the 2019 financial statements. c. Goods received on consignment amounting to $89,000 were included in the physical count of goods at the end of 2020 and included in ending inventory on the 2020…The Mike Tomlin Company has a calendar-year accounting period. The following error was discovered in April of 2019. This error would have affected the financial statements for 2017 and 2018. The ending balance in the inventory had been overstated at 12/31/2017 by $100,000. INSTRUCTIONS: Compute the effect this error had on the 2017 net income. Compute the effect, if any, each error had on the December 31, 2017 balance sheet items. Hint: be very careful about the time period!
