8. The Clarity, Inc. has determined its 2018 profit to be P5,000,000. In an initialaudit of the company's financial statements, you determined the following:Revenue received in advance in 2018 of P250,000 was credited to a revenueaccount when received. Of the total, P50,000 was earned in 2018, P120,000will be earned in 2019, and the remainder will be earned in 2020. Noadjustment was made at the end of 2018.P150,000 unrealized loss on FVPL (financial assets at fair value through profitor loss) in 2018 was erroneously debited to other comprehensive incomeaccount.What is the corrected profit for the year 2018?A. P4,600,000.B. P4,650,000.C. P4,850,000.D. P4,930,000.

Unearned Revenue represents the amount of advances received from the customers on the account of…

Answered: corrected profit

Business

Accounting

corrected profit

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

See similar textbooks

Similar questions

BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000, and its operating expenses were $50,000, and administrative expenses $ 25,000. Interest revenue for the year is $5,000 of which $2000 is unearned and interest expense was $12,000. BCD’s income tax rate is 25%. Required: Prepare a classified multiple-step income statement for the year for BCD Company.
For the year ended December 31, 2019, Settles Inc. earned an ROI of 9.6%. Sales for the year were $16 million, and average asset turnover was 2.4. Average stockholders' equity was $3.2 million.Required: Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.)
am. 116.
During 2018, Evensen Network, Inc., which designs network servers, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $29 million of the revenues and paid $590 million on its expenses. Read the requirements LOADING... . Requirement a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 900 million. How does the revenue principle help to answer this question? The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered).Therefore, the amount of revenue reported is what Evensen (collected, earned ,paid). ()= blank. inside are the word choices
Hello, just need help on net income and return on equity
M/s. XYZ LLC gives the following information related to Profit for last 8 years - 2011 - OMR 25,000, 2012 - OMR 20,000, 2013 - OMR 35,000, 2014 - OMR 30,000, 2015 - OMR 45,000, 2017 - OMR 40,000, 2018 - OMR 55,000, 2019 - OMR 50,000. Further the concern giving you additional information that the concern normal expects the Rate of Return @ 10% for the Capital Employed OMR 250,000, Total Tangible Assets OMR 200,000 and Current Liabilities OMR 100,000. Compute the value of goodwill on the basis of 4 years purchase under Capitalization of Average Profit Method and Super Profit Method. Which method of goodwill calculation is beneficial for the firm? Why these two methods showing two different values? Give your comments with the calculated values.
For the year ended December 31, 2022, Settles Incorporated earned an ROI of 7.2%. Sales for the year were $11 million, and average asset turnover was 1.8. Average stockholders' equity was $3.1 million. Required: a. Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. b. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place. a. Margin a. Net income b. Return on equity %
When net profit as per cost accounts and financial accounts is given The net profițs of a manufacturing company appeared at 74,000 as per financial records for the year ended 31st March, 2020. The cost books, however, showed a net profit of 88,460 for the same period. A careful scrutiny of the figure from both the sets of accounts reveled the following facts: (i) Income tax provided in financial books { 10,000 { 250 You are required to prepare (a) the reconcilitation statement (b) a Memorandum Reconcilation account (ii) Bank interest credited in financial books (iii) Works overhead under -recovered in cost books { 1,550 (iv) Depriciation charged in financial books { 5,600 (v) Depriciation recoverd in costing books { 6,000 (vi) Administrative overheads over recovered 7850 (vii) Loss due to obsolescene charged in financial accounts 32,800 (viii) Intereast on Investments not includeded in cost accounts { 2,000 (ix) Stores adjustments (Credited in financial books) 3240 (x) Loss due to…
Al Mawarid Construction Equipment LLC has provided following Income Statement for the year ending 31st Mar 2020: Particulars Amount Sales 180,000 Less: Cost of Goods Sold -90,000 Gross Profit 90,000 Less: Operating Expenses -55,000 Operating Profits (EBIT) 35,000 Less: Financial Charges -15,000 (Interest Paid) Profit Before Tax 20,000 Less: Taxes -3,000 Profit After Tax (Net Profit for the Year) 17,000 Calculate Gross Profit Ratio and Operating Profit Ratio from the above Income Statement.
The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Prot & Loss) Statement of Holiday Inc., showing Gross Prot, OperatingProt, Other gains/(losses), Earnings before Interest and Tax (EBIT), Prot before Tax and NetIncome i.e. Net Prot. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…
In 2025, Dollar Time Corporation earned sales revenues of $1,320,000 with related cost of goods sold of $720,000. The company incurred administrative expenses of $310,00 and had other revenues and gains of $22,000. Income tax expense was $31,000. Based on this information, the company will report gross profit for the year of
Wise AG began operations at the beginning of 2019. The following information pertains to this company 1. Pretax financial income for 2019 is €100,000. 2. The tax rate enacted for 2019 is 30% 3. Tax rate for future years is 40%. 4. Differences between the 2019 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to €7,000. Warranty deductions per the tax return amount to €2,000. b. Income on construction contracts using the percentage-of-completion method per books amounts to €92,000. Income on construction contracts for tax purposes amounts to €67,000. c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to €60,000. Depreciation of these assets amounts to €80,000 for the tax return. d. A €3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue recognized on an investment…