Homework Help is Here – Start Your Trial Now!
Business
Accounting
12/31/2020 12/31/2021 nventory 150,000 over 100,000 under eciation 85,000 under surance premium of P240,000 was paid in October1, 2020 covering th was charged to expense in full in 2020. In addition, on December 31,:

12/31/2020 12/31/2021 nventory 150,000 over 100,000 under eciation 85,000 under surance premium of P240,000 was paid in October1, 2020 covering th was charged to expense in full in 2020. In addition, on December 31,:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

How much is the adjusted net income in 2020 and 2021? 

How much is the net effect of the errors on the company’s working capital at December 31, 2021?

Dior Company's December 31, year-end financial statement contained the following errors: 12/31/2020 12/31/2021 Beg Inventory 150,000 over 100,000 under Depreciation 85,000 under An insurance premium of P240,000 was paid in October1, 2020 covering three years starting 2020. The same was charged to expense in full in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for P200, 000 cash, but it was recorded as income upon sale for the amount of proceeds. There were no othererrors during 2020, 2021 and 2022 and no corrections have been made forany of these errors. Ignore income tax considerations. Dior Company reported income of P1, 250,000 and P2, 340,000 in 2020 and 2021, respectively.
Transcribed Image Text:Dior Company's December 31, year-end financial statement contained the following errors: 12/31/2020 12/31/2021 Beg Inventory 150,000 over 100,000 under Depreciation 85,000 under An insurance premium of P240,000 was paid in October1, 2020 covering three years starting 2020. The same was charged to expense in full in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for P200, 000 cash, but it was recorded as income upon sale for the amount of proceeds. There were no othererrors during 2020, 2021 and 2022 and no corrections have been made forany of these errors. Ignore income tax considerations. Dior Company reported income of P1, 250,000 and P2, 340,000 in 2020 and 2021, respectively.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS