In 2019, NMD Inc. tapped you to audit its financial statements for the first time. You completed the audit for 2019 and prepared the audited financial statements directly from the audit working papers. You have returned to make the 2020 audit and discovered that the client's bookkeeper failed to record the adjusting entries you made in 2019 audit working papers, which entailed the adjustments for the following items: A. The December 31, 2019 inventory was understated by P300,000. B. No entry was made for accrued utilities expense of P115,000 as of year-end. c. Ordinary motor repairs of P19,200 was charged to Accumulated Depreciation during 2019. D. The entity failed to record the provision for uncollectible accounts in the amount of P36,000.

In 2019, NMD Inc. tapped you to audit its financial statements for the first time. You completed the audit for 2019 and prepared the audited financial statements directly from the audit working papers. You have returned to make the 2020 audit and discovered that the client's bookkeeper failed to record the adjusting entries you made in 2019 audit working papers, which entailed the adjustments for the following items: A. The December 31, 2019 inventory was understated by P300,000. B. No entry was made for accrued utilities expense of P115,000 as of year-end. c. Ordinary motor repairs of P19,200 was charged to Accumulated Depreciation during 2019. D. The entity failed to record the provision for uncollectible accounts in the amount of P36,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

44
I am really struggling with my accouting homework please help me :)
ABC Inc.'s accounting records disclose the following: P 1,800,000 Accounts receivable, January 1, 2021 Allowance for doubtful accounts, January 1, 2021 (credit balance) Sales for the year Collections from customers during the year 90,000 15,000,000 13,080,000 The following additional information was also obtained: > Included in the amount collected from customers was the recovery of P30,000 receivable from a customer whose account had been charged off as worthless in the prior year. > ABC determined that its receivable from a customer of P150,000 will not be collected, and management authorized its writeoff. > A customer settled its account on December 2, 2021 by issuing a 12%, 6-month note for P600,000. > The accounts receivable balance on December 31, 2021 includes P900,000 past due accounts. > The entity estimated that 20% of past due accounts will not be collected and 5% of the current accounts will not be collected as well. QUESTIONS: (Show your supporting computations in GOOD…
357,510 77,860 27,370 Retained earnings, December 31, 2019 Decrease in total liabilities during 2019 Gain on the sale of buildings during 2019 Dividends declared and paid in 2019 Proceeds from sale of common stock in 2019 Net income for the year ended December 31, 201938,420 7,650 83,980 Required: From the above data, calculate the retained earnings balance as of December 31, 2018
Please do not give solution in image format thanku
How much increase in the allowance for uncollectible accounts is required on December 31, 2022? 57,400 40,320 43,600 137,400 What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December31, 2022? 127,480 60,000 113,800 117,400
What is the effect of the foregoing errors on retained earnings at December 31, 2011?A. P 22,000 overstatedB. P 38,000 understatedC. P 67,000 overstatedD. P 82,000 overstated
12- Due to the concept of periodicity, interest, rent, etc. collected in the current period but concerning the future period. In which account are some incomes, such as, temporarily monitored? a) 380 Revenues for Future Months Hs. B) 181 Income Accruals Hs. NS) 642 Interest Income Hs. D) 649 Other Ordinary Income and Profits Hs. TO) 647 Rediscount Interest Income Hs
hello what is the current ratio at december 31,2019
Please fill in the missing numbers!
Help me please
37 ABC Company reported net income and retained earnings for a two – year period as follows: Net Income Retained Earnings, Ending 2020 6,000,000 6,000,000 2021 8,000,000 14,000,000 In checking the statement for the year ended December 31, 2020, the following errors are discovered: The company paid one – year insurance premium of P 240,000 effective April 1, 2020. The entire amount was debited to asset account and no adjustment was made at the end of 2020. The company leased a portion of its building for P 480,000. The term of the lease is one year ending April 30, 2021. Collection of rent was credited to unearned rent revenue account. At the end of 2020, no entry was made to take up the earned portion of the amount collected. Depreciation expense in 2020 was understated by P 12,000. Depreciation expense in 2021 was overstated by P 14,000. Bad debts expense of P 11,000 was not recorded in 2020. How much is…