ABC Company reported net income for the first two years of operation as follows:3,000,0005,000,00020x120x2In 20x2, the following errors are discovered (all errors were made in 20x1):Notes receivable of P15,000 was erroneously debited to accounts receivable.Notes payable of P10,000 was erroneously credited to accounts payable.• Land of P150,000 was erroneously debited to investment property account.Required:1. Adjusted net income for 20x22. Adjusted retained earnings as of December 31, 20x1

solution : let us first analyze and corerct all the errors and its effect correction entries…

o npany reported net income for the first two years of operation 20x1 3,000,000 5,000,000 20x2 In 20x2, the following errors are discovered (all errors were made in 20 • Notes receivable of P15,000 was erroneously debited to accounts re • Notes payable of P10,000 was erroneously credited to accounts pay • Land of P150,000 was erroneously debited to investment property : Required: 1. Adjusted net income for 20x2

o npany reported net income for the first two years of operation 20x1 3,000,000 5,000,000 20x2 In 20x2, the following errors are discovered (all errors were made in 20 • Notes receivable of P15,000 was erroneously debited to accounts re • Notes payable of P10,000 was erroneously credited to accounts pay • Land of P150,000 was erroneously debited to investment property : Required: 1. Adjusted net income for 20x2

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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