35. An Entity bought an office equipment costing P60,000. It was however, charged to repairs and maintenance. Data about the office machine follows: * Date of Purchase : June 30, 2020 Estimated Life : 5 years Salvage Value none The error was discovered and was corrected on December 31, 2020 during the closing of the books of accounts. How much is the understatement or overstatement of profit for the year ended Dec. 31, 2020, because of the error? O A. P52,000 understatement B. P53,000 overstatement O C. P54,000 understatement O D. P54,000 overstatement

35. An Entity bought an office equipment costing P60,000. It was however, charged to repairs and maintenance. Data about the office machine follows: * Date of Purchase : June 30, 2020 Estimated Life : 5 years Salvage Value none The error was discovered and was corrected on December 31, 2020 during the closing of the books of accounts. How much is the understatement or overstatement of profit for the year ended Dec. 31, 2020, because of the error? O A. P52,000 understatement B. P53,000 overstatement O C. P54,000 understatement O D. P54,000 overstatement

Name: 35. An Entity bought an officeequipment costing P60,000. It washoweve
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Description: 35. An Entity bought an officeequipment costing P60,000. It washowever, charged to repairs andmaintenance. Data about the officemachine follows: *Date of Purchase : June 30, 2020Estimated Life : 5 yearsSalvage ValuenoneThe error was discovered and w

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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At the end of the year the Investment in Bacolod account of the home office isP300,500. However, there are transactions discovered to have errors.•Bacolod branch bought equipment on June 1, 2020 costing P63,800 for thehome office's use and the policy is to record the asset in Bacolod's books.During that time the home office recorded the equipment and credited itsreciprocal account of its Bacolod branch.•The policy of the company regarding the equipment's depreciation is that ithas a life of 8 years with no salvage value and the straight-line method shouldbe used. No entry has been made by the home office and branch.•The home office ships merchandise to Bacolod amounting to P96,700. Bacolodrecorded the transaction as P97,600•Bacolod pays the home office's creditors in the amount of P32,400 and sends adebit memo to the home office.•Upon receipt of the debit memo, the home office debited its reciprocalaccount in the amount of P23,400 twice. What is the net adjustment of the investment…
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