Tack, Inc. reported a retained earnings balance of P 150,000 atDecember 31, year 1. In June year 2, Tack discovered that merchandisecosting P 40,000 had not been included in inventory in its year 1financial statements. Tack has a 30% tax rate. What amount should Tackreport as adjusted beginning retained earnings in its statement ofretained earnings at December 31, year 2?O 122,000O 190,000O 150,000178,000 These errors were discovered in the account of Golden Arches Company:Salaries payable amounting to P 34,000 was not recorded in 2021.Accrued vacation pay for the year 2021 for P 62,500 was notrecorded due to lack of knowledge by the bookkeeper.Insurance for a 12-month period purchased on November 1, 2021was charged to expenses in the amount of P 37,200.O P 6,200 underO P 59,300 overO P 64,500 underP 65,500 over

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Tack, Inc. reported a retained earnings balance of P 150,000 at December 31, year 1. In June year 2, Tack discovered that merchandise costing P 40,000 had not been included in inventory in its year 1 financial statements. Tack has a 30% tax rate. What amount should Tacl report as adjusted beginning retained earnings in its statement of retained earnings at December 31, year 2? O 122,000 O 190,000 150,000 178,000

Tack, Inc. reported a retained earnings balance of P 150,000 at December 31, year 1. In June year 2, Tack discovered that merchandise costing P 40,000 had not been included in inventory in its year 1 financial statements. Tack has a 30% tax rate. What amount should Tacl report as adjusted beginning retained earnings in its statement of retained earnings at December 31, year 2? O 122,000 O 190,000 150,000 178,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Tack, Inc. reported a retained earnings balance of P 150,000 at
December 31, year 1. In June year 2, Tack discovered that merchandise
costing P 40,000 had not been included in inventory in its year 1
financial statements. Tack has a 30% tax rate. What amount should Tack
report as adjusted beginning retained earnings in its statement of
retained earnings at December 31, year 2?
O 122,000
O 190,000
O 150,000
178,000

These errors were discovered in the account of Golden Arches Company:
Salaries payable amounting to P 34,000 was not recorded in 2021.
Accrued vacation pay for the year 2021 for P 62,500 was not
recorded due to lack of knowledge by the bookkeeper.
Insurance for a 12-month period purchased on November 1, 2021
was charged to expenses in the amount of P 37,200.
O P 6,200 under
O P 59,300 over
O P 64,500 under
P 65,500 over

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