1. Net Income in 2020 a. P140,000 b. Р70,000 с. Р50,000 d. P120,000 2. Working capital, end of 2020 a. P340,000 b. Р320,000 с. Р390,000 d. P250,000 3. Retained earnings, end of 2020 a. P140,000 b. P70,000 с. Р50,000 d. P120,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Based on the given data, answer the three questions. Show your solutions.

1. Net Income in 2020
a. P140,000
b. P70,000
с. Р50,000
d. P120,000
2. Working capital, end of 2020
а. Р340,000
b. Р320,000
с. Р390,000
d. P250,000
3. Retained earnings, end of 2020
a. P140,000
b. P70,000
с. Р50,000
d. P120,000
Transcribed Image Text:1. Net Income in 2020 a. P140,000 b. P70,000 с. Р50,000 d. P120,000 2. Working capital, end of 2020 а. Р340,000 b. Р320,000 с. Р390,000 d. P250,000 3. Retained earnings, end of 2020 a. P140,000 b. P70,000 с. Р50,000 d. P120,000
PROBLEM 6-3 Counterbalancing Errors
financial statements of Girlie Corporation:
You discovered the following errors in connection with your examination of the
merchandise was properly included in the ending inventory in 2020.
was not recorded until it was collected in January 2021. The merchandise
2) Sale of merchandise on account on December 29, 2020 amounting to P70,000
The following data were extracted from the financial statements of Girlie
1) Purchase of merchandise on account on December 27, 2020 amounting to
P50,000 was not recorded until it was paid in January 2021. The
financial statements of Girlie Corporation:
ale of merchandise on account on December 29, 2020 amounting to P70,000
Sare not recorded until it was collected in January 2021. The merchandise
was properly excluded in the ending inventory in 2020.
a On December 31, 2020, the ending inventory was understated by P20.000.
fellowing data were extracted from the financial statements of Girlie
Corporation:
2020
2021
100,000
300,000
150,000
400,000
Net income
Working capital
RE, end of the year
100,000
250,000
Transcribed Image Text:PROBLEM 6-3 Counterbalancing Errors financial statements of Girlie Corporation: You discovered the following errors in connection with your examination of the merchandise was properly included in the ending inventory in 2020. was not recorded until it was collected in January 2021. The merchandise 2) Sale of merchandise on account on December 29, 2020 amounting to P70,000 The following data were extracted from the financial statements of Girlie 1) Purchase of merchandise on account on December 27, 2020 amounting to P50,000 was not recorded until it was paid in January 2021. The financial statements of Girlie Corporation: ale of merchandise on account on December 29, 2020 amounting to P70,000 Sare not recorded until it was collected in January 2021. The merchandise was properly excluded in the ending inventory in 2020. a On December 31, 2020, the ending inventory was understated by P20.000. fellowing data were extracted from the financial statements of Girlie Corporation: 2020 2021 100,000 300,000 150,000 400,000 Net income Working capital RE, end of the year 100,000 250,000
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