You are auditing the financial statements of A Company for the year ended December 31, 2023. The Company's income statements indicated the following net income: 2021: P1,200,000 2022: P1,490,000 2023: P1,325,000 An examination of the accounting records for the year ended December 31, 2023 indicates that several errors were made. The following errors were discovered: A. Unused supplies at the end of each year were consistently omitted: 2020: P95,000; 2022: P100,000; 2023: P140,000 B. The footings and extensions showed that the inventory on December 31, 2022 was understated by P80,000 C. P105,000 worth of inventories were received on January 5, 2022 and were not included in the physical count as of December 31, 2021. Upon investigation, however, you discovered that these goods were shipped free-alongside by the supplier on December 28, 2021. The invoice for the goods were received and recorded in the purchase journal on December 29, 2021. D. The following advance payments to suppliers at the end of each year were recorded as cash purchase upon payment. Goods were received the following year: 2021: P120,000; 2023: P160,000 E. On January 1, 2021, the Company leased an equipment with annual rental payments of P100,000 over 4 years (entire remaining useful life of the leased equipment). The present value of the rental is at P303,000 at 12% implicit discount rate. The lease payments were recorded as rental expense upon payment at the end of each year. What is the correct net income for 2022? What is the correct net income in 2023? What is the net effect of errors on December 31, 2023 net working capital? what is the net effect of errors on December 31, 2023 net assets? what is the correct retained earnings as of December 31, 2023? what is the net effect of errors in the 2021 net income? what is the net effect of errors in the 2022 net income? what is the net effect of the adjustments on retained earnings as of January 1, 2023?
You are auditing the financial statements of A Company for the year ended December 31, 2023. The Company's income statements indicated the following net income:
2021: P1,200,000
2022: P1,490,000
2023: P1,325,000
An examination of the accounting records for the year ended December 31, 2023 indicates that several errors were made. The following errors were discovered:
A. Unused supplies at the end of each year were consistently omitted:
2020: P95,000; 2022: P100,000; 2023: P140,000
B. The footings and extensions showed that the inventory on December 31, 2022 was understated by P80,000
C. P105,000 worth of inventories were received on January 5, 2022 and were not included in the physical count as of December 31, 2021. Upon investigation, however, you discovered that these goods were shipped free-alongside by the supplier on December 28, 2021. The invoice for the goods were received and recorded in the purchase journal on December 29, 2021.
D. The following advance payments to suppliers at the end of each year were recorded as cash purchase upon payment. Goods were received the following year:
2021: P120,000; 2023: P160,000
E. On January 1, 2021, the Company leased an equipment with annual rental payments of P100,000 over 4 years (entire remaining useful life of the leased equipment). The present value of the rental is at P303,000 at 12% implicit discount rate. The lease payments were recorded as rental expense upon payment at the end of each year.
What is the correct net income for 2022?
What is the correct net income in 2023?
What is the net effect of errors on December 31, 2023 net
what is the correct
what is the net effect of errors in the 2021 net income?
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