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023? Select] V [ Select ] Debit Sales, P 120,000; Credit Retained Earnings, P 120,000 <>

023? Select] V [ Select ] Debit Sales, P 120,000; Credit Retained Earnings, P 120,000 <>

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the 2023 sales of P 120,000 were recorded in 2022; goods were excluded in the 2022 ending inventory at a cost of 70,000. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) overstated by P 120,000 at the end of year 2022 as a result of the error? [Select ] Question 2: Which of the following accounts is(are) understated by P 70,000 at the end of year 2022 as a result of the error? [ Select ] Question 3: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2022 as a result of the error? [ Select ] Question 4: What would be the adjusting entry to adjust the inventory if the error is discovered in year 2023? [ Select ] Question 5: What would be the adjusting entry to adjust sales revenue if the error is discovered in year 2023? Select ] V [ Select ] Debit Sales, P 120,000; Credit Retained Earnings, P 120,000 No AJE is necessary because the error already - Previous Next counterbalanced. Debit Retained Earnings, P 120,000; Credit Accounts Receivable, P 120,000 la Submit Qui. Debit - Retained Earnings, P 120,000; Credit - Sales, P 120,000 ons
Transcribed Image Text:You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the 2023 sales of P 120,000 were recorded in 2022; goods were excluded in the 2022 ending inventory at a cost of 70,000. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) overstated by P 120,000 at the end of year 2022 as a result of the error? [Select ] Question 2: Which of the following accounts is(are) understated by P 70,000 at the end of year 2022 as a result of the error? [ Select ] Question 3: Which of the following accounts is(are) overstated by P 50,000 at the end of year 2022 as a result of the error? [ Select ] Question 4: What would be the adjusting entry to adjust the inventory if the error is discovered in year 2023? [ Select ] Question 5: What would be the adjusting entry to adjust sales revenue if the error is discovered in year 2023? Select ] V [ Select ] Debit Sales, P 120,000; Credit Retained Earnings, P 120,000 No AJE is necessary because the error already - Previous Next counterbalanced. Debit Retained Earnings, P 120,000; Credit Accounts Receivable, P 120,000 la Submit Qui. Debit - Retained Earnings, P 120,000; Credit - Sales, P 120,000 ons
You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the goods received in December, 2022 at a cost of P 50,000 were recorded as purchases when paid in 2023. The goods were excluded from the 2022 ending inventory. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? [ Select ] V [ Select ] Question 2: Which of the following accoun the Inventory, December 31, 2022 only end of year 2022? [ Select ] Question 3: Which of the following accoun Purchases and Inventory, he December 31, 2022 end of year 2023 as a result of the error? Retained Earnings only Question 4: What would be the adjusting e Purchases only ror is discovered in year 2023? [Select] Question 5: What would be the adjusting entry to adjust Purchases account if the error is discovered in year 2023? Select]
Transcribed Image Text:You are examining the financial statements of France Company for the year ended December 31, 2022. It uses the physical inventory system of accounting for inventory. During your examination, you discovered that the goods received in December, 2022 at a cost of P 50,000 were recorded as purchases when paid in 2023. The goods were excluded from the 2022 ending inventory. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 50,000 at the end of year 2022 as a result of the error? [ Select ] V [ Select ] Question 2: Which of the following accoun the Inventory, December 31, 2022 only end of year 2022? [ Select ] Question 3: Which of the following accoun Purchases and Inventory, he December 31, 2022 end of year 2023 as a result of the error? Retained Earnings only Question 4: What would be the adjusting e Purchases only ror is discovered in year 2023? [Select] Question 5: What would be the adjusting entry to adjust Purchases account if the error is discovered in year 2023? Select]
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