Based on the data given, Determine the Net Income in 2017 You discovered the following errors in connect ion with your examination of the financial statements of the ABC Corporat.iion: 1. Accrued interest expense of P15,000 was not recorded at the end of 2017. 2. Accrued rent receivable of P20,000 was not recorded at the end of 2017. 3. The company paid one-year insurance premium of P36,000 effective March 1,2017. The entire amount was debited to expense account and no adjustment was made at the end of 2017. 4. The company leased a portion of its building for P30, 000. The term of the lease is one year ending April 1, 2018. Collection of rent was credited to rent revenue account. At the end of 2017, no entry was made to take up the unearned portion of the amount collected. The following data were extracted from the financial statements of ABC Corporation 2017 2018 Net income 200,000 160, 000 Working capital 180,000 260,000 RE, end of the year 200, 000 360, 000
Based on the data given, Determine the Net Income in 2017 You discovered the following errors in connect ion with your examination of the financial statements of the ABC Corporat.iion: 1. Accrued interest expense of P15,000 was not recorded at the end of 2017. 2. Accrued rent receivable of P20,000 was not recorded at the end of 2017. 3. The company paid one-year insurance premium of P36,000 effective March 1,2017. The entire amount was debited to expense account and no adjustment was made at the end of 2017. 4. The company leased a portion of its building for P30, 000. The term of the lease is one year ending April 1, 2018. Collection of rent was credited to rent revenue account. At the end of 2017, no entry was made to take up the unearned portion of the amount collected. The following data were extracted from the financial statements of ABC Corporation 2017 2018 Net income 200,000 160, 000 Working capital 180,000 260,000 RE, end of the year 200, 000 360, 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Based on the data given, Determine
the Net Income in 2017
You discovered the following errors in connect ion with your
examination of the financial statements of the ABC Corporat.iion:
1. Accrued interest expense of P15,000 was not recorded at the
end of 2017.
2. Accrued rent receivable of P20,000 was not recorded at the
end of 2017.
3. The company paid one-year insurance premium of P36,000
effective March 1,2017. The entire amount was debited to
expense account and no adjustment was made at the end of
2017.
4. The company leased a portion of its building for P30, 000.
The term of the lease is one year ending April 1, 2018.
Collection of rent was credited to rent revenue account. At
the end of 2017, no entry was made to take up the unearned
portion of the amount collected.
The following data were extracted from the financial statements
of ABC Corporation
2017 2018
Net income 200,000 160, 000
Working capital 180,000 260,000
RE, end of the year 200, 000 360, 000
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