SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised questions about the following amounts that has been included in net income: Unrealized loss on foreign currency translation Gain on early retirement of bonds payable Debit adjustment of profit of prior year for error in depreciation, net of tax effect 500,000 2,200,000 750,000 Loss from fire. 1,400,000
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11...
A: Solution 1: Journal Entries - Sydney Retailing Date Particulars Debit Credit 11-May Merchandi...
Q: True or False Pls indicate if the statements are true or false. 1. The parent company will always ...
A: Ans : False When Parent company is accounting for ownership in subsidiary Initial entry is passed...
Q: Feb. 1 Mr. Dela Cruz invested P50,000 cash in his laundry busihes Rented office space and paid P1,00...
A: The accounting equation states that assets equal to sum of liabilities and equity. The equity compri...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement This statement shows the income earned and loss incurred by the organization in ...
Q: of $638,000, liabilities of $269,000, and equity of $3 n on the accounting equation? se by $94,000 a...
A: Every transaction contains a cause and effect relationship. A sale, for example, increases accounts ...
Q: TRUE OR FALSE 1. Subsequent to the date of acquisition worksheet elimination number 1 will not comp...
A: 1. True In consolidated balance sheet, Cost of investment in subsidiary is compared to fair value of...
Q: n 12 September, the auditor became aware that a fire burnt down one of TGL’s warehouses, resulting i...
A: THE adjusting event are the event that provide evidence of condition that were existing at the balan...
Q: company's balance sheet shows: cash $30,000, accounts receivable $20,000, office equipment $54,000, ...
A: Cash = $30,000 Accounts receivable = $20,000 Office equipment = $54,000 Accounts payable = $21,000
Q: Use the following income to answer all questions in this section: Music, Inc. had the following beg...
A: Cost of goods manufactured = Beginning WIP + Total manufacturing costs - Ending WIP Cost of goods so...
Q: Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P...
A: Under the cost method of accounting, the purchase of treasury stock is recorded by debiting the trea...
Q: please classified whether they belong in deductible and nondeductible expense for each condition tha...
A: Business Expenses: Business expenses are a measure of cash spent to complete one's work and which ca...
Q: Fill in the missing data for each of the following independent cases. (Ignore income t
A: Answer Sales Revenue Calculations Variable Expenses Calculations Total Contribution Margin Cal...
Q: At the beginning of current year, Cash Company reported the following shareholders' equity: Share ca...
A: Amount Beginning Balance of Retained Earnings 28,00,000 Add: Net Income for the curre...
Q: Establishes the tax differences between individuals and corporations in the United States.
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If yo...
Q: A. White Castle Company makes miniature circuit boards that are components of wireless phones and pe...
A: Solution: A (i): Inventory Turnover Ratio: Formula = Cost Of Goods Sold / Average Inventory Hence: 1...
Q: transitory earnings are present, which of the following correctly depicts the order used on the inco...
A: Transitory earning are temporary earnings that are not earned in the regular course of business. The...
Q: Core Company reported the following increases (decreases) in the accounts for the current year: Cash...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: Chuzzle Company used the direct method to prepare the statement of cash flows. The entity had the fo...
A: Cash flow statement have three type of activity. Cash flow from operating activities,cash flow from ...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: Net Income: The amount of money earned by a person or corporation after subtracting expenses, allowa...
Q: Assume that a relatively new company you and you group members are involved with has presented you w...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: 15) Which of the following is not included in a forensic accountant's knowledge base? A. Comput...
A: Introduction:- Forensic accounting is the examination of fraud or financial manipulation through int...
Q: Partially correct answer icon Your answer is partially correct. Marin, Inc. leases a piece of equipm...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: ncrease in raw materials inventory Decrease in goods in process inventory Decrease in finished goods...
A: Cost of goods sold will be the cost of goods manufactured increased by beginning finished goods inve...
Q: A. Find the firm's breakeven output. B. If it wishes to have a monthly net income before taxes of $2...
A: a) Firm’s break-even point = Fixed cost / Contribution per unit Variable cost per unit = (130,000 + ...
Q: recast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...
A: Solution 1 Unit Sales,Year Ended 20Y8 Increase (Decrease)Actual Over Budget Budg...
Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories, ins...
A: Part 1:-Reorder Point It is the level of inventory at which we need to replenish the inventory stock...
Q: Determine the net income of a company for which the following information is available for the month...
A: Salaries expenses = $198,000 Interest expenses = $28,000 Rent expenses = $38,000 Revenue = $472,000
Q: Total change in cash = $40, Net operating cash flows = $20, Net investing cash flows = ($10) What is...
A: Lets understand the basics. Cashflow statement shows the how much cash inflow and outflow is there d...
Q: Hélp Save & Ex On January 1, Eastern College received $1,330,000 from its students for the spring se...
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service...
Q: If a company receives $12,600 from a stockholder, the effect on the accounting equation would be: Mu...
A: Cash received from stockholder =$12,600
Q: From page 5-2 of the VLN, which of the following accounts are subtracted from sales to compute Net s...
A: The Final Answer is Option B - 2, 3 & 4 That is "Deferred Revenue, Sales Discounts and Sales ret...
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021. ...
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after dedu...
Q: 2. What amount should be reported as unappropriated : retained earnings at year-end? * At the beginn...
A: Solution Working note - Number of shares outstanding after reacquisition =200000-10000. = 190000 Num...
Q: Compute the total cost of Job A45.
A: Job cost has 3 components viz Direct material,direct labour and overhead.. So job cost will be: (a)D...
Q: DRE Corporation had Common Stock - $20 par, 10,000 shares authorized, 4,500 shares issued and outsta...
A: Solution Concept Stock split Stock split means splitting the number of outstanding i...
Q: At the beginning of current year, Cash Company reported the following shareholders' equity: Share ca...
A: Calculation of balance of Unappropriated Retained earnings at the end of year Amount (In P)...
Q: The following information is available for the Higgins Travel Agency. After closing entries are post...
A: Retained earning opening balance = $132000 Net income = $46500 Dividends = $13600
Q: Compute for the Adjusted Profit for the year ended December 31, 20x1.
A: The entity has ended its year on 31st Dec 20x1. Now there are few events which are occurring between...
Q: Elmoe has the following information for the month of October, its first month of oper Work in Proces...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: What amount will Music, Inc. report as 2021 Cost of Goods Sold on its year ending 2021 Income Statem...
A: Calculation of cost of goods sold Amount ($) Manufacturing Costs $2,875 Add - Beginning Wor...
Q: pald dividends of $19,60 before closing had a balance of $301,000. The Net Income for the year Is: u...
A: Net Income (Loss) is the difference between the revenue earned and expenses incurred during the acco...
Q: onsumer Reports (January 2005) indicates that profit margins on extended warrantie nost products. In...
A: The point estimate of population proportion is sample proportion. The point estimate is as follows: ...
Q: A business had $52.000 in revenue at the end of its accounting period and $60.000 in Expenses. The o...
A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In th...
Q: 1. Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares o...
A: Shareholder's Equity Shareholders equity is considered to be the important part in the preparation o...
Q: Maplewood Supply received a $5,310 invoice dated April 15, 2015. The $5,310 included $310 freight. T...
A: Inventory - An Inventory denotes the current asset of the company that is controlled and managed by ...
Q: What is the maturity value of the loan if the proceeds is P22,000 at the rate of 10% for 10 months?
A: Maturity value of the loan = Proceeds from loan + Interest accrued on loan for 10 months Proceeds fr...
Q: Explain how a flexible budget can be of value to businesses
A: Answer: Flexible budget is the budget which can be estimated as per the quantity for variable cost w...
Q: Dividend received 500,000 Dividend paid 1,000,000 Cash received from customers 9,000,000 Proceeds fr...
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the so...
Q: tract from the trial balance of GoodFellas at 31. December 2019 (EUR) Debit Credit Costs of services...
A: Revenue refers to the money or profit earned by an entity or a company through its business activiti...
Q: ENOLA HOLMES Company provided the following information at year end: Share premium Accounts payable ...
A: Shareholders Equity: It is important to understand that shareholders' equity (also known as corporat...
What amount should be reported as adjusted net income for the current year?
![SHADOW BONE Company reported net income of P7,500,000 for the current year:
The auditor raised questions about the following amounts that has been included in net income:
Unrealized loss on foreign currency translation
Gain on early retirement of bonds payable
Debit adjustment of profit of prior year for error
in depreciation, net of tax effect
500,000
2,200,000
750,000
Loss from fire.
1,400,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0653dd33-0497-4d9d-932f-cfb1a044bd9f%2F0dfda8f2-60a4-4edd-a6c5-d05c2f6cae36%2Fp1p3scf_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- A company reported net income of 9.3 million; 10.3 million and 9.7 million for the years 2020, 2021 and 2022 respectively. In an audit conducted in 2022, the following was determined: a. Harry failed to accrue interest on the following notes. It was revealed that Harry recognizes the total interest income on the notes upon its collection on its due date. Principal Date Received Interest Due Date Note receivable - A 500,000 June 1, 2020 12% October 1, 2021 Note receivable - B 400,000 May 31, 2021 15% June 30, 2022 Note receivable - C 750,000 October 31, 2020 18% November 30, 2022 b. Harry paid 15 months' rent on June 1, 2022 amounting to 210,000. Harry uses the asset method in recording prepayments. No adjustments were made yet concerning this. c. Payment of salaries in 2020 amounting to 380,000 was inadvertently charged against the cash on hand. It should have been charged to cash in bank. d. The ending inventory in 2020 is overstated by 450,000 while the beginning inventory in 2022 is…1. Smith Company prepared an aging schedule of its A/R at year-end and determined that the net realizable value of the receivables was $250,000. Additional information is available as follows: For the year, bad debt expense was: $23,000 $20,000 $15,000 $10,000 None of the above. PARURE A. B. C. D. Allowance for doubtful accounts, beginning of year $28,000 (credit balance) Accounts written off during the year 23,000 Accounts receivable (gross) at year end 270,000 5,000 Recovery of accounts written-off E.Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- What is the net realizable value of accounts receivable at the end of year, given the following information:Balance in Accounts Receivable at end of year, $104,000Balance in Allowance for Doubtful Accounts, beginning of year, $2,000 debitWrite-offs during year, $5,000Bad debt expense for year, $9,000Recoveries during year of accounts previously written-off, $2,000The financial statements of Calico Corporation, for the May 31 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $278 million, accounts written off during the year of $116 million, balance in allowance at the end of the year $271 million. What did Calico Corporation report as bad debt expense for the year? Select one: a. $155 million b. $109 million c. None of the above d. $162 million e. $123 millionThe beginning balance in the Allowance for Doubtful Accounts is $47767 cr.. During the year a total of $41485 of accounts were written off and $4997 of accounts previously written off were recovered. The company estimates that the ending balance in the Allowance for Doubtful Accounts should be $60647. What is the bad debt expense for the year? Select one: O a. $49368 O b. $60647 Oc. $41485 O d. $36488
- At the beginning of the current year, Malice Company reported allowance for doubtful accounts of P300,000. During the current year, the entity charged P650,000 to doubtful accounts expense, wrote off P450,000 of uncollectible accounts receivable, and unexpectedly recovered P100,000 of bad debts written off in the prior year. What is the allowance for doubtful accounts at year-end?Question no. 02 (b) (07)Wilson Corporation uses an income statement approach to estimate credit losses. Its Accounts Receivable of $5,000,000 at the beginning of the period had a net realizable value of $4,225,000.During year 2019 company wrote off all of its uncollectible accounts. Of these accounts 35% were subsequently collected. Prepare the entries to record write off using allowance for doubtful account and direct write off approaches. Draft Entry to record the accounts receivable that were subsequently collected. Allowance for doubtful account is treated as an expense or as a liability in general journal. Give reasons for your answer. Moreover explain the treatment of these in balance sheet. What is the characteristic common to all current assets? Many retail stores regularly sell merchandise on installment plans, calling for payments over a period of 24 or 36 months. Do such receivables qualify as current assets? Explain.36. Akito Company uses the statement of financial position approach in estimating uncollectible accounts expense. The entity prepares an adjusting entry to recognize this expense at the end of the year. During the year, the entity wrote off a P100, 000 receivable and made no recovery of previous write-off. After the adjusting entry for the year, the credit balance in the allowance for doubtful accounts was P250, 000 larger than it was on January 1. What amount of uncollectible account expense was recorded for the year?
- The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation are P500,000 and P50,000. Net credit sales totaled P4,500,000 during the year while collections amounted to P4,400,000.Bad debts expense for the year is P30,000. Included in the collections was a P10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year? *The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation are P500,000 and P50,000. Net credit sales totaled P4,500,000 during the year while collections amounted to P4,400,000. Bad debts expense for the year is P30,000. Included in the collections was a P10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year? *The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation are P500,000 and P50,000. Net credit sales totaled P4,500,000 during the year while collections amounted to P4,400,000. Bad debts expense for the year is P30,000. Included in the collections was a P10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year? The answer is 520000. Explain how can we arrive at this answer.