Upon reviewing the draft of the financial statements for the year ended, December 31, 2022, Alocasia Company decide that market conditions were such that the provision for inventory obsolescence on December 31, 2022 should be increased by P3,000,000. If the same basis of calculating inventory obsolescence had been applied on December 31, 2021, the provision would have been P1,800,000 higher than the amount recognized in the statement of comprehensive income. What adjustment should be made to the net income of 2021 presented as a comparative figure in the 2022 financial statement? A) 3,000,000 decrease B) 1,800,000 increase C) 1,800,000 decrease D

Upon reviewing the draft of the financial statements for the year ended, December 31, 2022, Alocasia Company decide that market conditions were such that the provision for inventory obsolescence on December 31, 2022 should be increased by P3,000,000. If the same basis of calculating inventory obsolescence had been applied on December 31, 2021, the provision would have been P1,800,000 higher than the amount recognized in the statement of comprehensive income. What adjustment should be made to the net income of 2021 presented as a comparative figure in the 2022 financial statement? A) 3,000,000 decrease B) 1,800,000 increase C) 1,800,000 decrease D

Name: Upon reviewing the draft of the financial statements for the year end
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Upon reviewing the draft of the financial statements for the year ended, December 31, 2022, Alocasia Company decidedthat market conditions were such that the provision for inventory obsolescence on December 31, 2022 should beincreased by P3,000,000.

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

During 2024, Lipe and Lipe Corporation discovered that its ending inventories reported on its financial statements were misstated by the following amounts: understated by $ 120,000 overstated by 150,000 Lipe and Lipe uses the periodic inventory system and the FIFO cost method. 2022 2023 Required: 1-a. Determine the effect of 2022 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) 1-b. Determine the effect of 2023 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the error in 2024. 3. Will Lipe and Lipe account for the error (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Req 18 Determine the effect of 2022 errors on retained earnings at January 1, 2024, before any adjustments. (Ignore income taxes.) Note: If the answers is no effect then select "No effect" in the dropdown. Req 1A 2022 Beginning…
At the beginning of 2024, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool's value on that date was $1,250,000. The 2024 ending inventory valued at year- end costs was $1,484,000 and the year-end cost index was 1.06. Calculate the inventory value at the end of 2024 using the dollar-value LIFO method.
In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this accounting change? During 2021, Tricky Company decided to change from FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows: FIFO January 1 1,420,000 1,580,000 Weighted Average 1,540,000 1,660,000 December 31 Income tax rate is 35%. In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this accounting change? Your answer
Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company’s interim income statements as originally reported under the LIFO method follow: 2019 2020 1stQ 2ndQ 3rdQ 4thQ 1stQ Sales $ 29,000 $ 31,000 $ 33,000 $ 35,000 $ 37,000 Cost of goods sold (LIFO) 5,900 6,900 7,700 8,900 10,400 Operating expenses 3,900 4,100 4,500 4,900 5,100 Income before income taxes $ 19,200 $ 20,000 $ 20,800 $ 21,200 $ 21,500 Income taxes (25%) 4,800 5,000 5,200 5,300 5,375 Net income $ 14,400 $ 15,000 $ 15,600 $ 15,900 $ 16,125 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 2019 2020 1stQ 2ndQ…
Avila Corp. reported 2020 net income of $20,000. However, the ending inventory in 2019 had been understated by $2,000 and 2020's ending inventory had been overstated by $3,000. Avila's correct net income for 2020 was a. $21,000 b. $15,000 c. $19,000 d. $25,000
Sampress, Inc., reported inventory in the 2020 year-end balance sheet, using the average cost method, as $342,000. In 2021, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in 2020, ending inventory would have been $367,000. What adjustment would Sampress make for this change in inventory method?
i need the answer quickly
Vikram bhai
On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $810,000. The 2024 and 2025 ending inventory valued at year-end costs were $845,000 and $924,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.05 for 2025 Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Inventory at Date Year-End 01/01/2024 12/31/2024 12/31/2025 Cost Inventory Inventory Year-End Cost Layers at Base Year Inventory Layers at Base Year-End Cost Index Index Year Cost Cost Layers Converted to Cost Base Base 2024 Base 2024 2025 M
In 2024, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2023, B & B’s inventories were $32.2 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.9 million at December 31, 2023, if determined on an average cost basis. Ignoring income taxes, what journal entry will B & B use to record the adjustment in 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Amber Corporation reported income from continuing operations of $1,600,000 (after taxes) for the fiscal year ended December 31, 2020. The following information, which has not yet been considered or included in the above figure, has been revealed as well: 1. On December31, 2020, Amber adopted the FIFO cost method of inventory valuation. The company had previously used the average method. The change increased income for 2020 by $50,000 (pre-tax) and the cumulative effect of the change on prior years' income was a $60,000 (pre-tax) increase. Some equipment was sold for $100,000 cash during the year at a time when its book value was $140,000. (Depreciation has been correctly recorded.) 2. 3. Amber decided to discontinue its microchip division in 2020. During the current year, the loss on the disposal of this segment was $250,000 (before applicable taxes). Instructions Present in good form the income statement of Amber Corporation for 2020 starting with "Income from continuing operations…
On January 1, 2024, a Company adopted the dollar - value LIFO method for its one inventory pool. The pool's value on this date was $730,000. The 2024 and 2025 ending inventory valued at year-end costs were $767,000 and $810,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.08 for 2025. Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar - value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.