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 Robi Corporation reported profit for the years 2012 and 2011 at P700,000 and P550,000,respectively. Your audit of the company's accounts disclosed the need for adjustments as follows:20112012Overstatement of ending inventoriesdue to error in pricingOmission of depreciation on newly-acquired equipmentUnderstatement of Commission receivableP 29,000P 33,00015,00022,00015,00018,000A purchase of merchandise was not recordeduntil the following year, and also was notincluded in the ending inventory.60,000

Assets - treated as income so added to the net income except for beginning inventory because it will…

Answered: P 67,000 overstated D. P 82,000…

Business

Accounting

P 67,000 overstated D. P 82,000 overstat

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

22. Subject :- Accounting
PE.17-03B Current Position Analysis The following items are reported on a company's balance sheet: Cash Marketable securities Accounts receivable (net) Inventory Accounts payable Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place. a. Current ratio $210,000 120,000 110,000 160,000 200,000 b. Quick ratio
what if in the future, it will earn a negative RCE. Is this possible for a company? Why?
Prepare the statement of retained earnings with the information attached.
4) Accrued taxes payable of $150,000 were not recorded at December 31, 2020. Office supplies on hand of $95,000 at December 31, 2021 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause retained earnings at December 31, 2021 to be in error by what amount?
For the items listed below, indicate how each should be reported in the financial statements. Use the following letter code for your selections: a. Continuing operations b. Discontinued operations c. Prior period adjustment 1. The percentage of estimated bad debts was increased from 1% to 2%, thus increasing bad debt expense. 2. Obsolete inventory was written off. 3. Investments were sold for less than cost. 4. It was discovered that dividend revenue was inadvertently omitted from last year’s income statement. 5. The company sold one of its warehouses at a loss. 6. Litigation with the federal government related to income taxes of three years ago was settled. The company is continually involved in various adjustments with the federal government related to its taxes. 7. A component of the business was disposed of at a loss. 8. The company neglected to record depreciation expense on some assets in the previous year. 9. All production in the United States was…
Estefan’s accounts showed a gross profit for the year of £27,200. After the accounts were prepared it was found that the opening inventory/stock had been overstated by £1,200 while closing inventory/stock had been understated by £1,700. What is the amount of Estefan’s corrected gross profit for the year? Answers: a. £24,300 b. £26,700 c. £27,700 d. £30,100
am. 11.
18 A company understated its income and accounts receivable last year by $5,000 Which entry should be made in the current year to correct this material error? O Debit Sales for $5,000; Credit Retained Earnings for $5,000 O Debit Accounts Receivable for $5,000; Credit Retained Earnings for $5,000 Debit Retained Earnings for $5,000; Credit Accounts Receivable for $5,000 Debit Retained Earnings for $5,000; Debit Sales for $5,000
Question 15 An auditor is required to confirm accounts receivable if the accounts receivable balances are: Older than one year Material to the financial statements Smaller than expected Subject to valuation estimated
MANCOSA Financial Reporting and Analysis Jan23 Y1 S2 HONO Which of the following statements about financial statements is true? O A. Adjustments are made to reflect the effect of inflation on the financial results. O B. Some values that are reflected depend on the estimates of management and but will be reported in a similar way across companies. O C. Financial statements have a forward-looking bias. O D. Financial statements do not reflect information that cannot be expressed in monetary terms. Previous page 23°C
I followed the formulas per my textbook and cannot figure these practice questions out. Can you help me figure out what I am doing wrong?