What should be reported as the correct 2029 pretax income?
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During the audit of BAC Company's 2029 financial statements, the auditors discovered that the 2029 ending inventory had been understated by $12,000 and that the 2029 beginning inventory was overstated by $9,000. Before the effect of these errors, 2029 pretax income had been computed as $115,000.
What should be reported as the correct 2029 pretax income?
A) $112,000
B) $94,000
C) $118,000
D) $136,000
E) $103,000
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- If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?Tanke Company reported net income on the year-end financial statements of $850,200. However, errors in inventory were discovered after the reports were issued. If inventory was overstated by $21,000, how much net income did the company actually earn?The adjusted (audited) income statement of Alex Kwon Corp. shows a net income of P175,000 for the year ended December 31, 2020. Adjustments were made for the following errors: • December 31, 2019, inventory overstated by P22,500 • December 31, 2020, inventory understated by P37,500 • A P10,000 customer's deposit received in December 2020, was credited to sales in 2020. The goods were actually shipped in January 2021. What is the unadjusted net income of Alex Kwon Corp. for the year ended December 31, 2020? A. P234,000 B. P125,000 C. P170,000 D. P200,000
- (S) porins) An audit of Antwren revealed four errors that were made but never corrected. In 2021, ending inventory was overstated by $201, 000 and depreciation was overstated by $44,000. In 2022, nding inventory was understated by $111, 000 and wages expens as understated by $86, 000. What effect did these errors have 0 htwren's 2022 net income? (RE&CF 6) understated by $226, 000 overstated by $132, 000 pverstated by $157,000 inderstated by $25,000What is the effect of the foregoing errors (overstatement) on total assets ar December 31, 2025?What is the effect of the foregoing errors (overstatement) on total assets at december 31,2025?
- Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. Group of answer choices 1,600,000 1,200,000 1,440,000 1,550,000Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. Inventory at December 31, 2020 was understated by P 80,000. Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. The net income for the year ended December 31, 2021 before any adjustments is P 1,550,000. O 1,550,000 O 1,200,000 O 1.440,000 O 1.600,000JYD Corporation has determined its 2019 and 2020 net income figures to be $1,150,000 and $1,100,000, respectively. In a first time audit of the company’s financial statements, you determine the following errors: Merchandise inventory was incorrectly determined: $50,000 overstatement for 2019 and $150,000 overstatement for 2020. Revenue received in advance in 2019 of $250,000 was credited to a revenue account when received. Of the total $50,000 was earned in 2019, $120,000 was earned in 2020 and the remainder will be earned in 2021. $120,000 gain on sale of plant assets in 2020 was erroneously credited to Accumulated Profits and losses. What is the corrected net income for the year 2020?
- Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: • A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. • Inventory at December 31, 2020 was understated by P 80,000. • Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. • A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. • The net income for the year ended December 31, 2021 before any adjustments is P 1,550.000. 1,200,000 1,440,000 1,550,000 1,600,000JYD Corporation has determined its 2019 and 2020 net income figures to be P1,150,000 and P1,100,000, respectively. In a first time audit of the company’s financial statements, you determine the following errors: Merchandise inventory was incorrectly determined: P50,000 overstatement for 2019 and P150,000 overstatement for 2020. Revenue received in advance in 2019 of P250,000 was credited to a revenue account when received . Of the total P50,000 was earned in 2019, P120,000 was earned in 2020 and the remainder will be earned in 2021. P120,000 gain on sale of plant assets in 2020 was erroneously credited to Accumulated Profits and losses. What is the corrected net income for the year 2020? A. P900,000 B. P1,240,000 C. P1,120,000 D. P1,190,000Henson company had determined the 2019 and 2020 net income to be 4,000,000 and 5,000,000 respectively. In a first time audit of the financial statements, the following errors are discovered: Merchandise inventory was incorrectly determined - 50,000 overstatement for 2019 and 150,000 overstatement for 2020 Revenues received in advance in 2019 of 300,000 was credited to be a revenue account when received. Of the total 50,000 was earned in 2019, 200,000 was earned in 2020 and the remainder will be earned in 2021. 400,000 gain on sale of plant asset in 2020 was erroneously credited to retained earnings. What is the corrected net income for 2020? a. 5,500,000 b.5,450,000 c.5,400,000 d.5,550,000