Unused office supplies Accrued utilities Rent revenue collected in advance Interest receivable Accrued wages Prepaid insurance P 25,000 52,000 87,500 65,500 49,100 60,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4. What is the net effect of the above errors in the 2021 net income? (If
understated, put a negative (-) sign before the numerical value)
BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of
its business three years ago. The accruals and prepayments at the end of 2021 are as follows:
P 25,000
Unused office supplies
Accrued utilities
52,000
Rent revenue collected in advance
87,500
Interest receivable
65,500
Accrued wages
49,100
Prepaid insurance
60,000
Your answer
Transcribed Image Text:4. What is the net effect of the above errors in the 2021 net income? (If understated, put a negative (-) sign before the numerical value) BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its business three years ago. The accruals and prepayments at the end of 2021 are as follows: P 25,000 Unused office supplies Accrued utilities 52,000 Rent revenue collected in advance 87,500 Interest receivable 65,500 Accrued wages 49,100 Prepaid insurance 60,000 Your answer
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