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How much is net income?

How much is net income?

FINANCIAL ACCOUNTING
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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How much is net income?

MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution 125,000 Delivery expense 425,000 Depreciation - delivery truck Depreciation - office Depreciation - store equipment Dividends paid Dividends revenue Doubtful accounts 60,000 35,000 25,000 450,000 50,000 30,000 Income tax 280,000 Freight in Gain on sale of equipment 145,000 10,000 Interest revenue 20,000 Loss on sale of trading securities Loss from inventory write down Merchandise inventory, January 1 50,000 150,000 1,100,000 Office salaries 950,000 Purchase discounts 45,000 Purchases 4,600,000 Retained earnings, January 1 550,000 Sales 8,750,000 Sales returns and allowances 150,000 Sales salaries 600,000 Store supplies. 150,000 Inventory at year-end was valued at P850,000 (P1,000,000 cost less the P150,000 write down of inventory to net realizable value). MOWGLI Company mad a prior period error by understating depreciation in 2020 by P200,000.
Transcribed Image Text:MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution 125,000 Delivery expense 425,000 Depreciation - delivery truck Depreciation - office Depreciation - store equipment Dividends paid Dividends revenue Doubtful accounts 60,000 35,000 25,000 450,000 50,000 30,000 Income tax 280,000 Freight in Gain on sale of equipment 145,000 10,000 Interest revenue 20,000 Loss on sale of trading securities Loss from inventory write down Merchandise inventory, January 1 50,000 150,000 1,100,000 Office salaries 950,000 Purchase discounts 45,000 Purchases 4,600,000 Retained earnings, January 1 550,000 Sales 8,750,000 Sales returns and allowances 150,000 Sales salaries 600,000 Store supplies. 150,000 Inventory at year-end was valued at P850,000 (P1,000,000 cost less the P150,000 write down of inventory to net realizable value). MOWGLI Company mad a prior period error by understating depreciation in 2020 by P200,000.
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