4. What is the effect of these errors on the net working capital at the end of 2007?a. P8,000 understatedb. P8,900 understatedc. P 16,850 understatedd. P 9,250 understated5. What is the adjusted balance of the stockholders' equity at December 31, 2007?b. P 95,900а. Р 95,000с. Р 103,850d. P 96,250 You have been engaged to prepare audited financial statement figures for BOURNE, Inc. The records are inagreement with the following balance sheet:BOURNE, INC.Balance SheetDecember 31, 2007AssetsLiabilities and CapitalP10,000 Accounts Payable12,000 Notes Payable13,000 Common Stock25,000 Additional paid-in capital40,000 Retained EarningsP100.000P10,0003,00020,00040,00027,000Р100.000CashAccounts receivableNotes receivableInventoryEquipment- netA review of the records of the corporation indicates that the errors and omissions listed in the table below had notbeen corrected during the applicable years:InventoryUnderstatedP6,000InventoryOverstatedDepreciationExpenseP250500PrepaidExpenseUnearnedAccruedDecember 31IncomeExpenseP200752004P900700---20052006P7,0008,000P400150500100---20079,00035060030050The net income according to the records is: 2005, P7,500, 2006, P6,500; and 2007, P5,500. No dividends weredeclared during these years, and no adjustments were made to retained earnings.Ignoring income tax effects, answer the following questions:

Working capital =Current assets -Current Liabilities Current Assets includes: Cash Inventory…

You have been engaged to prepare audited financial statement figures for BOURNE, Inc. The records are in agreement with the following balance sheet: BOURNE, INC. Balance Sheet December 31, 2007 Assets Liabilities and Capital Cash Accounts receivable Notes receivable Inventory Equipment- net P10,000 Accounts Payable 12,000 Notes Payable 13,000 Common Stock 25,000 Additional paid-in capital 40,000 Retained Earnings P100.000 P10,000 3,000 20,000 40,000 27,000 P100.000 A review of the records of the corporation indicates that the errors and omissions listed in the table below had not been corrected during the applicable years: Inventory Overstated Understated P6,000 Inventory Depreciation Expense P250 500 150 350 Prepaid Expense P900 700 500 600 Unearned December 31 2004 2005 2006 2007 Accrued Expense P200 75 100 50 Income P7,000 8,000 P400 9,000 300 The net income according to the records is: 2005, P7,500; 2006, P6,500; and 2007, P5,500. No dividends were declared during these years, and no adjustments were made to retained earnings. Ignoring income tax effects, answer the following questions:

You have been engaged to prepare audited financial statement figures for BOURNE, Inc. The records are in agreement with the following balance sheet: BOURNE, INC. Balance Sheet December 31, 2007 Assets Liabilities and Capital Cash Accounts receivable Notes receivable Inventory Equipment- net P10,000 Accounts Payable 12,000 Notes Payable 13,000 Common Stock 25,000 Additional paid-in capital 40,000 Retained Earnings P100.000 P10,000 3,000 20,000 40,000 27,000 P100.000 A review of the records of the corporation indicates that the errors and omissions listed in the table below had not been corrected during the applicable years: Inventory Overstated Understated P6,000 Inventory Depreciation Expense P250 500 150 350 Prepaid Expense P900 700 500 600 Unearned December 31 2004 2005 2006 2007 Accrued Expense P200 75 100 50 Income P7,000 8,000 P400 9,000 300 The net income according to the records is: 2005, P7,500; 2006, P6,500; and 2007, P5,500. No dividends were declared during these years, and no adjustments were made to retained earnings. Ignoring income tax effects, answer the following questions:

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

Prepare the adjusted statement of financial position
Ratio Analysis Presented below are summary financial data from Porter's annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents Marketable Securities Accounts Receivable (net) Total Current Assets Total Assets Current Liabilities Long-Term Debt- Shareholders' Equity Income Statement Interest Expense Net Income Before Taxes b. Quick ratio $1,850 19,100 9,367 39,088 123,078 38,450 7,279 68,278 Calculate the following ratios: (Round to 2 decimal points) a. Times-interest-earned ratio c. Current ratio 400 14,007
Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Galaxy Corporation. Galaxy Corporation Balance Sheet Cash $656,250 Accounts payable $1,575,000 Accounts receivable $2,296,875 Accruals $984,375 Inventory $3,609,375 Notes payable $1,378,125 Total current assets $6,562,500 Total current liabilities $3,937,500 Long-term debt $6,562,500 Total debt $10,500,000 Common equity $2,100,000 Net plant and equipment $10,937,500 Retained earnings $4,900,000 Total equity $7,000,000 Total assets $17,500,000 Total liabilities and equity $17,500,000 During your interview for an introductory-level analyst position at Galaxy Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet. Net Working Capital $__________________________ Current Ratio…
20. The trade accounts receivable balance as at December 31, 2021 is A. P 1,522,500 B. P 1,147,500 C. P 1,485,000 D. p 1,447,500 21. The net current trade and other receivables as at December 31, 2021 is A. P 1,822,500 B. P 2,272,500 C. P 2,647,500 D. P 2,610,000 22. How much of the foregoing will be presented under noncurrent assets as at December 31, 2021? Α. ΡΟ B. P 375,000 C. P 525,000 D. P 1,200,000
Analysis of Financial StatementsThere was a bit of concern about one of Big Rock’s newer entities – Big Rock PavingCompany. Management wants you to review the two financial statements below and giveyour analysis of the company’s performance.Big Rock Paving CompanyAssetsLiabilitiesCurrent Assets: Current Liabilities:Cash 500,000 Accounts Payable 700,000Accounts Receivable 300,000 Notes Payable 500,000Inventory 800,000Total Current Assets 1,300,000 Total Current Liabilities 1,200,000Fixed Assets: Owners’ Equity:Property, Plant & Equipment 2,200,000 Common Stock ($1 Par) 600,000Less: Accumulated Depreciation 600,000 Capital Surplus 100,000Net Fixed Assets 1,600,000 Retained Earnings 100,000Total Assets 2,900,000 Total Owners’ Equity 800,000Total Liabilities and Owners’Equity2,900,000Big Rock Paving CompanyIncome Statement for Year Ending December 31, 2021Sales 3,400,000Less: Cost of Goods Sold 2,700,000Less: Administrative Expenses 700,000Less Depreciation 682,000Earnings Before…
The Cambridge Company collected the following information for the preparation of its December 31 classified balance sheet: Accounts receivable $11.250 Property, plant, and equipment $150,000 15,000 Inventory Cash 48.750 Other current assets 22,500 Other long term assets 30.000 Accounts payable 15.750 Common stock 7,500 Long-term liabilities 41,250 Retained earnings Other current liabilities 13,500 Prepare a classified balance sheet for Cambridge Company Cambridge Company Balance Sheet December 31 Assets Liabilities & Stockholders' Equity Current Labilities Current Assets Other current liabilities Total Current Liabilities Other current assets Noncurrent Liabilities Total Curren Assets Total Liabilities Noncurrent Assets Stockholders Couity Common stock Other long term assets Total Stockholders Equity Total Nonturent Assets Total Assets Total Liabilities & Stockholders' Equity 3 Check
please give me answer
The data below is the sales of MGM Co. The accountant of the company hasprovided you with the following data as well as his computed balance ofP2,350,000 as the gross sales of the company. As the external auditor of thefirm, you are tasked to compute whether the gross sales presented to you isunderstated or overstated as compared to your audited amount. How much isthe understatement or overstatement? (Place 0 if there is no misstatement. If theamount represents an overstatement, place a - sign before the amount. No needto provide description.)
Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $ 23 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 165 December 31, 2020, by purchase date December 2,2020 165 July 20, 2020 50 215 During the year 2020, the following purchases and sales were made. Purchases Sales March 15 365 units at $28 April 10 265 July 20 365 units at 29 August 20 365 September 4 265 units at 32 November 18 215 December 2 165 units at 35 December 12 265 The company uses the periodicinventory method. (a1)
In connection with your audit of the Cebu Co. for the year 20x1, you were able to gather the following accounts from the unadjusted trial balance of the company on December 31, 20x1: Cash P340,000 Trading securities 1,050,000 Accounts Receivable 8,000 Allowance for doubtful accounts 360,000 Notes receivable 20,000 Prepaid rent 300,000 Merchandise inventory 900,000 Accounts payable 485,000 Notes payable 200,000 Accrued expenses 44,000 Bonds payable (due semiannually in June and December at P60,000) 600,000 Income tax payable 60,000 SSS and HDMF premiums payable 24,000 Withholding tax payable 18,000 Mortgage payable, due July 31, 20x3 400,000 Contingent liability 160,000 Additional information: Cash consists of: Cash in bank per bank statement (outstanding checks P24,000) P334,000 Petty cash, including unreplenished petty cash expense vouchers of P300) 1,000…
Do my A, B & C answers Look Correct? Could you Help me with C, D & E?
The following information is available in respect of Vegas plc for the last 2 years ended 31 December. Non-current Assets (at Net Book Value) Current Assets: Inventory Trade receivables Cash at bank Equity and Liabilities: Equity Share capital £1 Share premium Revenue reserve Vegas plc: Statement of Financial Position 31.12.2021 Non-current Liabilities: Loan Current Liabilities: Trade payables Taxation (accrual) Operating profit Taxation £000 390 462 80 88 142 £000 2,100 932 3.032 900 50 852 1,802 1,000 230 3.032 274 (156) 118 (87) 31 31.12.2020 Vegas plc: Income Statement (Extract) for the year ended 31.12.2021 £000 Dividends Retained profit for the year The following information is also available: • There were no non-current asset disposals during the year. • Depreciation for the year was £240,000. £000 210 346 50 73 137 £000 1,975 606 2.581 700 821 1,521 850 210 2.581 Prepare, in a suitable format, the Statement of Cash Flow for Vegas plc for the year ended 31.12.2021, presenting…