Based on the given data, answer the three questions. Show your solutions. 2020. The entire amount was debited to expense account and no adjustmentYou discovered the following errors in connection with your examination of the3) The company paid one-year insurance premium of P24,000 effective April 1,lease is one year ending April 30, 2021. Collection of rent was credited to rent2) Accrued interest receivable of P15,000 was not recorded at the end of 2020.PROBLEM 6-2 Counterbalancing Errors4) The company leased a portion of its building for P48,000. The term of thefinancial statements of Jane Corporation:was made at the end of 2020.4) The company leased a portion of its building for P48,000. The term oflease is one year ending April30, 2021. Collection of rent was credited to rerevenue account. At the end of 2020, no entry was made to take un seunearned portion of the amount collected.The following data were extracted from the financial statements of laneCorporation:20202021100,000300,000100,000150,000400,000250,000Net incomeWorking capitalRE, end of the year 1. Net Income in 2020P95,000b. P96,000c. P90,000d. P105,000а.2. Working capital, end of 2020а. Р295,000b. Р305,000с. Р305,000d. P290,0003. Retained earnings, end of 2020а. Р95,000b. P96,000с. Р90,000d. P105,000

Answer: Net Income unadjusted = P 1,00,000 Less: Accrued rent expense = P 10,000 Add: Accrued…

You discovered the following errors in connection with your examination of the 2) Accrued interest receivable of P15,000 was not recorded at the end of 2020, 3) The company paid one-year insurance premium of P24,000 effective April 1, 2020. The entire amount was debited to expense account and no adjustment PROBLEM 6-2 Counterbalah financial statements of Jane Corporation: Lof 2020.

You discovered the following errors in connection with your examination of the 2) Accrued interest receivable of P15,000 was not recorded at the end of 2020, 3) The company paid one-year insurance premium of P24,000 effective April 1, 2020. The entire amount was debited to expense account and no adjustment PROBLEM 6-2 Counterbalah financial statements of Jane Corporation: Lof 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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