12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and2010 contained errors as follows:2010Ending Inventory$3,000 overstated$8,000 overstated$2,000 understated$6,000 overstated2011Depreciation ExpenseAssume that no correcting entries were made at December 31, 2010, or December 31, 2011 andthat no additional errors occurred in 2012. Ignoring income taxes, by how much will workingcapital at December 31, 2012 be overstated or understated?a. $0b. $2,000 overstatedc. $2,000 understatedd. $5,000 understated

Step1: Calculating the value from which working capital shall be overstated or understated. We…

Answered: 12. Casillas, Inc. is a calendar-year…

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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12. The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATIONIncome StatementFor the Year Ended December 31, 2021 Revenues and gains: Sales revenue $ 790,000 Interest revenue 52,000 Gain on sale of investments 99,000 Total revenues and gains 941,000 Expenses and losses: Cost of goods sold $ 425,000 Selling expense 79,000 Administrative expense 99,000 Interest expense 36,000 Restructuring costs 75,000 Income tax expense 56,750 Total expenses and losses 770,750 Net Income $ 170,250 Earnings per share $ 1.70 Required:Prepare a multiple-step income statement for 2021 applying generally accepted accounting principles. The income tax rate is 25%. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)
Which is false? Business with annual gross receipts of more than P3,000,000 * O Are subject to graduated income tax Are subject to Creditable withholding tax O Are subject to VAT O None of the above
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. As a result of this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $50,000,000 All Cost (incl. Interest & Taxes) $40,000,000 Net Income $10,000,000 Summarized Balance Sheet This Year Last Year Assets: All Current Assets combined $50,000,000 $40,000,000 All Long-Term Assets combined $50,000,000 $40,000,000 Total Assets: $100,000,000 $80,000,000 Liabilities & Stockholders Equity All Current Liabilities combined $30,000,000 $25,000,000 All Long-Term Liabilities combined $25,000,000 $20,000,000 Stockholders Equity $45,000,000 $35,000,000 Total…
what is the net effect of the errors in the 2018 net income?
don't give answer in image format
This year, Soner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. What is Boomer's tax basis in his Sooner stock after the distribution? Tax basis
The following comparative information is available for Wildhorse Company for 2025. Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases Your answer is partially correct. Net income $ eTextbook and Media * Your answer is incorrect. LIFO eTextbook and Media Net cash provided by operating activities * Your answer is incorrect. Determine net income under each approach. Assume a 30% tax rate. 18,200 Quality of earnings ratio Touthook and Media LIFO $92,000 35,000 26,000 LIFO 9,000 14,705 FIFO $92,000 Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis. 31,800 26,000 9,000 2.14 14,705 FIFO 23,940 LIFO Calculate the quality of earnings ratio under each approach. (Round answers to 2 decimal places, e.g. 5.15.) 39,005 FIFO FIFO 0.95 22,750
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
19. Michael Campbell, age 66, is an instrument technologist in the bauxite industry. Michael provides you with the following information to compute his income tax liability for year of assessment 2013. The profit and loss account relating to the business as at December 31, 2013 is as follows: Revenue from instrument contracts Other income Less Expenses: Wages & salaries Utilities Depreciation Legal fees General expenses Professional fees Net Profit $ 700,000 280,000 570,000 820,000 730,000 680,000 228 Trade, Business, Profession & Vocation Continued $ 10,200,000 70,000 3,780,000 6,490,000 Notes • The legal fees relate to the new building purchased during the year. Included in general expenses are utility bills amounting to $75,000 paid by the business for Michael's house. . Other income relates to gross interest on a fixed deposit received as follows: Gross interest for the period January to June received July 31, 2013 amounted to $60,000, tax deducted at source was $15,000. Gross…
26. Jethroe Co. reported a retained earnings balance of $200,000 at December 1, year 4. In June year 5, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its year 4 financial statements. Jethroe has a 21% tax rate. What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, year 5?

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