Bramble Corp.'s adjusted trial balance at December 31, 2023, included the following: Debit Credit Sales Revenue $173000 Cost of Goods Sold $73000 Administrative Expenses 30400 Loss on Disposal of Equipment 10800 Sales Commission Expense 9600 Interest Income 6100 Loss from Flood Damage 14100 Loss from Discontinued Operations 25500 Credit Losses 7900 Totals $171300 $179100 Bramble uses the perpetual system, and their income tax rate is 30%. On Bramble's multiple-step income statement for 2023, income from continuing operations is ○ $50800. ○ $17885. ○ $23310. ○ $25550.

Bramble Corp.'s adjusted trial balance at December 31, 2023, included the following: Debit Credit Sales Revenue $173000 Cost of Goods Sold $73000 Administrative Expenses 30400 Loss on Disposal of Equipment 10800 Sales Commission Expense 9600 Interest Income 6100 Loss from Flood Damage 14100 Loss from Discontinued Operations 25500 Credit Losses 7900 Totals $171300 $179100 Bramble uses the perpetual system, and their income tax rate is 30%. On Bramble's multiple-step income statement for 2023, income from continuing operations is ○ $50800. ○ $17885. ○ $23310. ○ $25550.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...

See similar textbooks

Similar questions

Shannon Company began operations on January 1, 2020. The financial statement contained the following errors: YEAR 2020- Ending inventory 160,000 understated; Depreciation expense 60,000 understated; Insurance expense 100,000 overstated; Prepaid insurance 100,000 understated; YEAR 2021 - Ending inventory 150,000 overstated; Insurance expense 100,000 understated. On December 31, 2021, fully depreciation machinery was sold for P110,000 cash but the sale was not reported until 2022. No corrections have been made for any of the errors. Ignoring income tax, what amount should be reported as net effect of the errors on Working Capital on December 31, 2021?
Shannon Company began operations on January 1, 2020. The financial statement contained the following errors: YEAR 2020- Ending inventory 160,000 understated; Depreciation expense 60,000 understated; Insurance expense 100,000 overstated; Prepaid insurance 100,000 understated; YEAR 2021 - Ending inventory 150,000 overstated; Insurance expense 100,000 understated. On December 31, 2021, fully depreciation machinery was sold for P110,000 cash but the sale was not reported until 2022. No corrections have been made for any of the errors. Ignoring income tax, what amount should be reported as net effect of the errors on Net Income for 2020? a. 200,000 over b. 200,000 under c. 260,000 under d. 0
Shannon Company began operations on January 1, 2020. The financial statement contained the following errors: YEAR 2020- Ending inventory 160,000 understated; Depreciation expense 60,000 understated; Insurance expense 100,000 overstated; Prepaid insurance 100,000 understated; YEAR 2021 - Ending inventory 150,000 overstated; Insurance expense 100,000 understated. On December 31, 2021, fully depreciation machinery was sold for P110,000 cash but the sale was not reported until 2022. No corrections have been made for any of the errors. Ignoring income tax, what amount should be reported as net effect of the errors on Retained Earnings on December 31, 2021?
Shannon Company began operations on January 1, 2020. The financial statement contained the following errors: YEAR 2020- Ending inventory 160,000 understated; Depreciation expense 60,000 understated; Insurance expense 100,000 overstated; Prepaid insurance 100,000 understated; YEAR 2021 - Ending inventory 150,000 overstated; Insurance expense 100,000 understated. On December 31, 2021, fully depreciation machinery was sold for P110,000 cash but the sale was not reported until 2022. No corrections have been made for any of the errors. Ignoring income tax, what amount should be reported as net effect of the errors on Retained Earnings on December 31, 2021? a. 100,000 over b. 100,000 under c. 200,000 over d. 200,000 under
Blue Company shows the following entries in its Equipment account for 2021. All amounts are based on historical cost. Equipment 2021 2021 Jan. 1 Balance 126,630 June 30 Cost of equipment sold Aug. 10 Purchases 31,540 (purchased prior to 2021) 21,250 12 Freight on equipment purchased 820 25 Installation costs 2,510 Nov. 10 Repairs 450 Assuming that company policy is to charge a full year depreciation in the year of purchase and the year of sale, compute the proper depreciation charge for 2021 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2021, balance was purchased in 2019. (Round answers to 0 decimal places, e.g. 45,892.) (1) Straight-line $ (2) Sum-of-the-years'-digits
Company started operations on January 1, 2019. Financial Statements for 2019 and 2020 contained the following errors: December 31, 2019 December 31, 2020 Ending inventory P55,000 overstated P65,000 understated Depreciation expense 35,000 overstated - Insurance expense 25,000 understated 25,000 overstated Prepaid insurance 25,000 overstated - Additionally, a fully depreciated equipment was sold for P12,000 on December 31, 2020. The sale was not recorded until 2021. No corrections have been made for any of the errors. (Ignore income tax considerations) How much would be the total effect of the errors in company's 2020 net income? A.Overstated by P83,000 B.Understated by P157,000 C.Overstated by P48,000…
Peter Senen Company started operations on January 1, 2019. Financial Statements for 2019 and 2020 contained the following errors: December 31, 2019 December 31, 2020 Ending inventory 55,000 overstated 65,000 understated Depreciation expense 35,000 overstated - Insurance expense 25,000 understated 25,000 overstated Prepaid insurance 25,000 overstated - Additionally, a fully depreciated equipment was sold for $12,000 on December 31, 2020. The sale was not recorded until 2021. No corrections have been made for any of the errors. (Ignore income tax considerations) How much would be the total effect of the errors in Peter Senen’s 2020 net income?
Peter Senen Company started operations on January 1, 2019. Financial Statements for 2019 and 2020 contained the following errors: December 31, 2019 December 31, 2020 Ending inventory 55,000 overstated 65,000 understated Depreciation expense 35,000 overstated - Insurance expense 25,000 understated 25,000 overstated Prepaid insurance 25,000 overstated - Additionally, a fully depreciated equipment was sold for $12,000 on December 31, 2020. The sale was not recorded until 2021. No corrections have been made for any of the errors. (Ignore income tax considerations) How much would be the understatement in Peter Senen’s Accumulated Profits balance at…
can you help making this adjustment into the trial balance?
Link Co. purchased machinery that cost $3000000 on January 4, 2022. The entire cost was recorded as an expense. The machinery has a 9-year life and a $200000 residual value. The error was discovered on December 20, 2024. Ignore income tax considerations. Link's income statement for the year ended December 31, 2024, should show the cumulative effect of this error in the amount of O $2333333. O $0. O $2066667. O $2377778.
On January 2, 2020, Quezon Inc. purchased equipment with a cost of P10,500,000, a useful life of 12 years and no salvage value. The Company uses sum-of-the-years-digit method of depreciation. At December 31, 2020 and December 31, 2021, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2020 12/31/2021 Fair value less cost to sell P8,515,000 P7,530,000 Value-in-use P8,551,000 P7,315,000 There is no change in the asset's useful life or salvage value. The 2021 income statement will report gain on recovery of?
Berman Company sold equipment on July 1, 2019 for $50,000. The equipment had cost $140,000 and had $80,000 of accumulated depreciation as of January 1, 2019. Depreciation for the first 6 months of 2019 was $8,000. how to record the jounral entry for the sold equiment?