The errors below were noted after the books of CalMart Corporafion were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column.20202021Earnings Retained Eamings after Net IncomeAssetEamings Retained Earnings afterclosingLiabilityRetainedbefore closingNet IncomeAssetLiabilityRetainedbefore dosingclosingFailure to record purchases ofmerchandise on account ofP2,000 at the end of 2020.Sale of merchandise on accounton December 30,2020 amountingto P2,000 was not recorded untilthe customer paid his account onJanuary 2021.Depreciation expenseequipment in 2020overstated by P1.000.Paidone year insurance premiumof P2,000 effective April 1,2020.onwasThe entire amount was debited toexpense account and noadjustment was made at the endof 2020.On December 31,2020, theCompany acquired a parcel ofland and a building at a total costof P5,000,000. The entire amountpaid was debited to land account.A reasonable estimate of the costпоthat should have been allocatedto the building was P,2000,000.The building has an estimated lifeof 20 yearsFailure to record supplies onhand at the end of 2020. Thesupplies on hand amounted toP6,000.Understatement of 2020 endinginventory worth P2,000.Failure to record accrued intereston notes payable at the end of2020.Notes payable, principalamount P10,000; interest rate,10%; acquired March 31,2020.Falure to recognize uneamedrent at the end of 2020 worthP1,000.Goods received in December2020 were recorded aspurchases when paid in 2021.The goods were excluded fromthe 2020 ending inventory.

Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

The errors below were noted after the books of CalMart Corporation were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column. 2020 2021 Retained before closing Net Income Asset Liability Earnings Retained Eamings after Net Income Retained before dosing Asset Liability Eamings Retained Earnings after closing closing Failure to record purchases of merchandise on account of P2,000 at the end of 2020. |Sale of merchandise on account on December 30,2020 amounting to P2,000 was not recorded until the customer paid his account on January 2021 Depreciation expense equipment in 2020 overstated by P1,000 on was

The errors below were noted after the books of CalMart Corporation were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column. 2020 2021 Retained before closing Net Income Asset Liability Earnings Retained Eamings after Net Income Retained before dosing Asset Liability Eamings Retained Earnings after closing closing Failure to record purchases of merchandise on account of P2,000 at the end of 2020. |Sale of merchandise on account on December 30,2020 amounting to P2,000 was not recorded until the customer paid his account on January 2021 Depreciation expense equipment in 2020 overstated by P1,000 on was

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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…
The following information is presented for Marigold Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory. Year Net Incomeper Books Error in EndingInventory 2017 $ 180,000 Overstated $ 23,000 2018 93,000 Overstated 35,000 2019 108,000 No error - 2020 218,000 Understated 6,200 2021 97,000 Understated 19,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory
#26 While examining the December 31, 2018 financial statements of Sydney company, the following errors are discovered: *Inventory on January 1 had been overstated by P30,000. *Inventory on December 31 was understated by P60,000. During 2018, Donna received a P120,000 cash advance from customer for merchandise to be manufactured and shipped during 2019. The amount was credited to sales revenue. *The net income reported on the 2018 income statement before reflecting any adjustment is P3,000,000. What is the corrected net income for the year ended December 31, 2018? ANSWER: 2,970,000 Pls provide solution and explanation for the answer above
What is the correct answer and show the solution.
RR
solve correct
What is the net effect of the errors in FIERY’s December 31 retained earnings balance?
The following additional information is available: (i) Inventory as at 31 December 2019 was valued at $560,400,000 after inventory count. (ii) The bank statement for December 2019 showed a bank loan interest of $1,200,000 was deducted but no entries have been recorded in the book. (iii) It was discovered that a payment of $9,600,000 for purchase of office equipment on 1 January 2019 had been wrongly treated as purchase of inventory. The cash paid was correctly recorded in the bank account. No adjustment has been made. There are no other additions or disposal of fixed asset during the period. (iv) Depreciation is to be provided for the year as follows: Office equipment: straight line method with useful life of 5 years and no residual value. Motor vehicle: double declining balance method with useful life of 8 years and residual value $120,000. (v) The following year-end adjustments are to be made:…
The condensed Income statement of Chris Co. for the year ended December 31 , 2021 presented below: Chris Co. Income Statement For the Year Ended December 31, 2021 Sales 1,000,000 Cost of goods sold 600,000 400,000 Gross income Operating expenses 150,000 250,000 Net income An examination of the company records shows the following errors must be corrected : • December 31 , 2021 inventory is understated by: P31,000. Accrued expenses of P4,000 and prepaid expenses of P6,000 were not recognized in the company's books . The company employs the expense method in accounting for prepayments. • Sales of P5,000 were not recorded until January 2022 , although the goods were shipped in December 31, 2021, and were excluded from the December 31 physical inventory. Purchases of P30,000 made in December 31 , 2021, were not recorded although the goods were received and properly included in the December 31, physical inventory. A machine was sold for P10,000 on July 1 2021, and the proceeds were credited…
Please do not give solution in image format ?