Use the following information for the next four (4) questions: Sison Company reported profits of P4,000,000 and P8,000,000 in 2021 and 2022, respectively. In 2023, the following prior period errors were discovered: The inventory on December 31, 2021 was understated by P200,000. An equipment with an acquisition cost of P1,200,000 was erroneously charged as expense in 2021. The equipment has an estimated useful life of 5 years with no residual value. Sison Company provides full year depreciation in the year of acquisition. The unadjusted balances of retained earnings are P8,800,000 and P16,800,000 as of December 31, 2021 and 2022, respectively. How much is the correct profit in 2021? How much is the correct profit in 2022? How much is the correct retained earnings in 2021? How much is the correct retained earnings in 2022?

Q: During 2020, Wildhorse Co. reported net sales of $2,747,200 and net income of $1,330,000. Its…

A: The asset turnover ratio indicates the value of revenue earned by the entity by using assets. So it…

Q: Rembrandt Paint Company had the following income statement items for the year ended December 31,…

A: Income Statement -A company's financial success for a given accounting period is reported via the…

Q: Use the following information for the next three (3) questions: Silhouette Corporation reported…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: (Error Analysis and Correcting Entry) The reported net incomes for the first 2 years of Sandra…

A: Following is the statement which will show the effect of rectification of errors on net earnings:…

Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…

A: The easiest technique for computing depreciation over time is straight-line depreciation. According…

Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…

A: Depreciation is the decrease in the value of the asset as a result of wear and tear because of use…

Q: During 2023, Door Inc. decided to dispose of Bell Division, which is considered a separate reporting…

A: The company is doing business to generate a profit. Sometimes, a company operates in two or more…

Q: The following information is related to Crane Company for 2020. Retained earnings balance, January…

A: Income statement shows different items which are expensed current year and received current year.

Q: he following information is related to Nash Company for 2020. Retained earnings balance, January 1,…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: During 2015, Company P sold $50,000 of goods to subsidiary Company S at a profit of $12,000.…

A: Inter-company transactions are those transactions happening within the Companies. These are the…

Q: Sheridan Co. purchased machinery that cost $3250000 on January 4, 2019. The entire cost was recorded…

A: If there is an error in recording the amount of any transaction then in the future it will be…

Q: At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not…

A: The objective of the question is to determine the correct journal entry to record the unrecorded…

Q: The following are independent errors: a. In January 2019, repair costs of $11,280 were debited to…

A: The journal entries for the preceding errors discovered during 2020 are recorded as follows:

Q: Profit before tax for Juventus is estimated at $3,000,000 for the year ended June 30, 2019, during…

A: Performance materiality is generally determined by dividing an item by the net earnings. A…

Q: The accountant of Swift Inc. was preparing for the audit of its financial statements for the year…

A: Change in Accounting Estimate: A change that affects the subsequent accounting for current or future…

Q: Indicate the effect-Understated, Overstated, or No Effect-that each of the following errors has on…

A: Net income, also known as profit or net earnings, is a measure of a company's financial performance…

Q: ollowing pretax amounts pertain to Helsinki Company for the yearended December 31, 2021: Sales,…

A: Retained earnings are an important accounting topic to understand. The term refers to a company's…

Q: Utah Company purchased equipment that cost $3,000,000 on January 1, 2018. The entire cost was…

A: The adjustment to retained earnings on May 15, 2022, will be $1,840,000

Q: The reported net incomes for the first 2 years of Flounder Products, Inc., were as follows: 2020,…

A: Accounting Errors: These are defined as the common unintentional mistakes made by the accountant…

Q: The current value or carrying value of Lance Engineering “cement mixer” was 2,550 in 2020. The…

A: Deemed to be impaired : When an asset is considered to be impaired, its balance sheet must be…

Q: Link Co. purchased machinery that cost $3000000 on January 4, 2022. The entire cost was recorded as…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: Dyke Company's net incomes for the past three years are presented below:                       2019…

A: Depreciation is the fall in the value of any fixed tangible asset every year due to usage of asset,…

Q: The following information is related to Vaughn Company for 2020. Retained earnings balance, January…

A: Multiple-step income statement: It is the more detailed statement for calculating the net income of…

Q: In its income statement for the year ended December 31, 2022, Blue Company reported the following…

A: In a multiple-step income statement, all items of revenue and expenses are bifurcated into operating…

Q: es Rembrandt Paint Company had the following income statement items for the year ended December 31,…

A: The multi-step income statement is a detailed income statement format that determines the gross…

Q: Following an internal audit of Adam Limited, a manufacturing company for the year 2023, the…

A: Under International Financial Reporting Standards (IFRS), a change in depreciation method is…

Q: adjusted balance of 2021 net income.

A: Definition: Net income: It refers to net earnings of the business or an individual after making…

Q: During an audit of Madison Company's December 31, 2020 records it was discovered that the company…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: In 2021, it was discovered that a company had debited expense for the full cost of an asset…

A: Depreciation:Depreciation refers to the continuous reduction in the depreciable value of depreciable…

Q: During an audit of Madison Company’s December 31, 2020 records it was discovered that the company…

A: As per IAS 8,Accounting policies, changes in Accounting estimates  and errors  Prior period errors…

Q: The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at…

A: Formula to calculate cash flow from sale of equipment:

Q: The company's return on assets for the year ending December 31, 2019, is not exactly matching any of…

A: The Return on Assets is calculated with the help of following formula Return on Assets = Net Income…

Q: You are auditing Crown Corporation for the year ended 2022, Its reported net income for the year…

A: Errors and omissions are common occurrences in the accounting process which are detected during the…

Q: Oriole Company incurred the following infrequent losses during 2020: A $277000 write-down of…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1;…

A: Asset turnover ratio: It implies to a financial ratio that is computed and used by the company to…