4. Net income in 2021 a. P155,000 000 b. P139,000 c. P145,000 000 L04 d. P161,000 000.054 5. Working capital, end of 2021 a. P406,000 b. P400,000 benisral c. P410,000 000,029 d. P385,0000001 6. Retained earnings, end of 2021 a. P250,000 b. P260,000 (1)6. c. P244,000 5lbns0S d. P235,000 7. Prepare adjusting entries assuming errors were discovered in (a) 2020, (b) 2021, and (c) 2022. 21 126 You discovered the following errors in connection with your examination of the Chapter 6 - Correction of Errors PROBLEM 6-2 Counterbalancing Errors You discovered the following errors in connection with your examination of the financial statements of Jane Corporation: Accrued rent expense of P10,000 was not recorded at the end of 2020. 2) Accrued interest receivable of P15.000 was not recorded at the end of 2020. 3) 1) S) The company paid one-year insurance premium of P24,000 effective April 1 2020. The entire amount was debited to expense account and no adjustment was made at the end of 2020. 4) The company leased a portion of its building for P48,000. The term of the lease is one year ending April 30, 2021. Collection of rent was credited to rent revenue account. At the end of 2020, no entry was made to take up the unearned portion of the amount collected. The following data were extracted from the financial statements of Jane Corporation: 2020 2021 100,000 300,000 100,000 Net income Working capital RE, end of the year 150,000 400,000 250,000 Questions:
4. Net income in 2021 a. P155,000 000 b. P139,000 c. P145,000 000 L04 d. P161,000 000.054 5. Working capital, end of 2021 a. P406,000 b. P400,000 benisral c. P410,000 000,029 d. P385,0000001 6. Retained earnings, end of 2021 a. P250,000 b. P260,000 (1)6. c. P244,000 5lbns0S d. P235,000 7. Prepare adjusting entries assuming errors were discovered in (a) 2020, (b) 2021, and (c) 2022. 21 126 You discovered the following errors in connection with your examination of the Chapter 6 - Correction of Errors PROBLEM 6-2 Counterbalancing Errors You discovered the following errors in connection with your examination of the financial statements of Jane Corporation: Accrued rent expense of P10,000 was not recorded at the end of 2020. 2) Accrued interest receivable of P15.000 was not recorded at the end of 2020. 3) 1) S) The company paid one-year insurance premium of P24,000 effective April 1 2020. The entire amount was debited to expense account and no adjustment was made at the end of 2020. 4) The company leased a portion of its building for P48,000. The term of the lease is one year ending April 30, 2021. Collection of rent was credited to rent revenue account. At the end of 2020, no entry was made to take up the unearned portion of the amount collected. The following data were extracted from the financial statements of Jane Corporation: 2020 2021 100,000 300,000 100,000 Net income Working capital RE, end of the year 150,000 400,000 250,000 Questions:
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.2E: Allowance Method of Accounting for Bad Debts—Comparison of the Two Approaches Kandel Company had...
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:4. Net income in 2021
a. P155,000 000
b. P139,000
c. P145,000 000
L04
d. P161,000 000.054
5. Working capital, end of 2021
a. P406,000
b. P400,000
benisral
c. P410,000 000,029
d. P385,0000001
6. Retained earnings, end of 2021
a. P250,000
b. P260,000
(1)6.
c. P244,000 5lbns0S
d. P235,000
7. Prepare adjusting entries assuming errors were discovered in (a) 2020, (b)
2021, and (c) 2022.
21 126
Transcribed Image Text:You discovered the following errors in connection with your examination of the
Chapter 6 - Correction of Errors
PROBLEM 6-2 Counterbalancing Errors
You discovered the following errors in connection with your examination of the
financial statements of Jane Corporation:
Accrued rent expense of P10,000 was not recorded at the end of 2020.
2) Accrued interest receivable of P15.000 was not recorded at the end of 2020.
3)
1)
S) The company paid one-year insurance premium of P24,000 effective April 1
2020. The entire amount was debited to expense account and no adjustment
was made at the end of 2020.
4) The company leased a portion of its building for P48,000. The term of the
lease is one year ending April 30, 2021. Collection of rent was credited to rent
revenue account. At the end of 2020, no entry was made to take up the
unearned portion of the amount collected.
The following data were extracted from the financial statements of Jane
Corporation:
2020
2021
100,000
300,000
100,000
Net income
Working capital
RE, end of the year
150,000
400,000
250,000
Questions:
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