Use the following information for the next three (3) questions: Silhouette Corporation reported profit for the year 2014 and 2015 at P550,000 and P700,000, respectively. Your audit of the company’s account disclosed the need for adjustments as follows: 2014 2015 Overstatement of ending inventory due to error in pricing 29,000 33,000 Omission of depreciation on newly-acquired equipment 15,000 15,000 Understatement of commission receivable 22,000 18,000 A purchase of merchandise was not recorded until the following year, and also was not included in the ending inventory 60,000 33) The adjusted profit for 2015 was 34) What is the effect of the foregoing errors (overstatement) on total assets at December 31, 2015? 35) What is the effect on the foregoing errors on retained earnings at December 31, 2014?
Use the following information for the next three (3) questions:
Silhouette Corporation reported profit for the year 2014 and 2015 at P550,000 and P700,000, respectively. Your
audit of the company’s account disclosed the need for adjustments as follows:
2014 2015
Overstatement of ending inventory due to error in pricing 29,000 33,000
Omission of
Understatement of commission receivable 22,000 18,000
A purchase of merchandise was not recorded until the following year, and also was not
included in the ending inventory 60,000
33) The adjusted profit for 2015 was
34) What is the effect of the foregoing errors (overstatement) on total assets at December 31, 2015?
35) What is the effect on the foregoing errors on retained earnings at December 31, 2014?
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