3. What is the carrying amount of accumulated depreciation as of December 31, 2022?Items 3-4. On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. Themachine is depreciated on the straight line method over a four-year period with no residual value.Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements.The oversight was discovered during the preparation of the 2022 financial statements.a. 500,000b. 1,000,0000.0d. 2,000,000 1. What amount should be reported as the pretax cumulative effect of this accountingchange?During 2021, Revel Company decided to change from the FIFO method of inventoryvaluation to weighted average method.a. 400,000b. 300,000c. 600,000d. 500,000January 1 inventoryDecember 31 inventoryFIFO7,200,0007,900,0002. What total amount should be reported as prior period error in the financial statementsfor the year ended December 31, 2020?a. 1,400,000b. 600,000WEIGHTED AVERAGE7,700,0008,300,000ABC Company reported the ff events during 2020:• It was decided to write off 800,000 from inventory which was over two years oldas it was obsolete.c.800,000d. 200,000• Sales of 600,000 had been omitted from the financial statements for the yearended December 31,2019

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Description: 3. What is the carrying amount of accumulated depreciation as of December 31, 2022?Items 3-4. On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. Themachine is depreciated on the straight line method over a four-year period

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3. What is the carrying amount of accumulated depreciation as of December 31, 2022? Items 3-4, On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. The machine is depreciated on the straight line method over a four-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements. The oversight was discovered during the preparation of the 2022 financial statements. a. 500,000 b. 1,000,000 0.0 d. 2,000,000

3. What is the carrying amount of accumulated depreciation as of December 31, 2022? Items 3-4, On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. The machine is depreciated on the straight line method over a four-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements. The oversight was discovered during the preparation of the 2022 financial statements. a. 500,000 b. 1,000,000 0.0 d. 2,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

3. What is the carrying amount of accumulated depreciation as of December 31, 2022?
Items 3-4. On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. The
machine is depreciated on the straight line method over a four-year period with no residual value.
Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements.
The oversight was discovered during the preparation of the 2022 financial statements.
a. 500,000
b. 1,000,000
0.0
d. 2,000,000

1. What amount should be reported as the pretax cumulative effect of this accounting
change?
During 2021, Revel Company decided to change from the FIFO method of inventory
valuation to weighted average method.
a. 400,000
b. 300,000
c. 600,000
d. 500,000
January 1 inventory
December 31 inventory
FIFO
7,200,000
7,900,000
2. What total amount should be reported as prior period error in the financial statements
for the year ended December 31, 2020?
a. 1,400,000
b. 600,000
WEIGHTED AVERAGE
7,700,000
8,300,000
ABC Company reported the ff events during 2020:
• It was decided to write off 800,000 from inventory which was over two years old
as it was obsolete.
c.800,000
d. 200,000
• Sales of 600,000 had been omitted from the financial statements for the year
ended December 31,2019

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