PROBLEM A Your examination of the financial statements of Water Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000 b. Sales made in December 2017 for P150,000 were recorded in January 2018 c. Rent paid on April 30, 2017, covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recorded at year-end d. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018. e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018. f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018. g. The unadjusted net income for 2017 is P650,000

PROBLEM A Your examination of the financial statements of Water Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000 b. Sales made in December 2017 for P150,000 were recorded in January 2018 c. Rent paid on April 30, 2017, covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recorded at year-end d. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018. e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018. f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018. g. The unadjusted net income for 2017 is P650,000

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

What is the difference between income and savings contribution categories on the income statement.?
What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value)
TRUE OR FALSE? Interest revenue need not be added to the gross income to compute for the total income.
Should we include income derived from illegal sources in the computation of gross income? Why or why not?
Net income
What is the definition of gross income? “Gross income includes all income unless….”
What impact does an increase in expenses have on net income?
Compare the accounting for income taxes under GAAP and IFRS
What is adjusted gross income and what influence does it have on other elements in the tax return such as the medical deduction, etc.
How much should be included as unrealized loss on the income statement for the year 2019?
What does it mean when you have a debit balance of accrued interest income? Does a Debit balance accrued interest inome a deduction in net income?
The payment of supplier's account is debited to accounts receivable. What is the effect of the error in the net income of the current period and in subsequent period? Cannot be determined based.on the given information Overstated O Understated O No effect