User Account

All Pages

How much is the correct retained earnings

Assignment Help Accounting Basics
Reference no: EM133157957

Intermediate Accounting Question - Cash and Accrual Basis, Single Entry Accounting and Error Correction - Choose the CORRECT Answer. Use the following information for items 1-3:

Putin Company made the following errors:

a. December 31, 2022 inventory was understated by P100,000.

b. December 31, 2023 inventory was overstated by P160,000.

c. Purchases on account in 2022 were understated by P400,000. (Correctly Included in physical count).

d. Advances to suppliers in 2023 totaling P520,000 were inappropriately charged as purchases.

e. December 31, 2022 prepaid insurance was overstated by P20,000.

f. December 31, 2022 unearned rent income was overstated by P104,000.

g. December 31, 2023 interest receivable was understated by P68,000.

h. December 31, 2023 accrued salaries payable was understated by P120,000.

i. Advances from customers in 2023 totaling P240,000 were inappropriately recognized as sales but the goods were delivered in 2024.

j. Depreciation expense in 2022 was overstated by P28,800

k. In 2023, the acquisition cost of a delivery truck amounting to P360,000 was inappropriately charged as expense. The delivery truck has a useful life of five years. Putin's policy is to provide a full year's straight line depreciation in the year of acquisition and none in the year of disposal.

l. A fully depreciated equipment with no residual value was sold in 2024 for P200,000 but the sale was recorded in the following year.

Profits before correction of errors were P492,000, P624,000, and P840,000 in 2022, 2023, and 2024, respectively. Retained earnings before correction of errors were P4,492,000, P5,116,000 and P5,956,000 in 2022, 2023, and 2024, respectively.

1. What is the net effect of the errors on the 2023 retained earnings? (over) understatement

a. P348,800

b. (P348,800)

c. P384,800

 d. (P384,800)

2. How much is the correct retained earnings in 2022?

a. P4,404,800

b. P4,304,800

c. P4,524,400

d. P4,340,800

3. How much is the correct retained earnings in 2024?

a. P6,400,800

b. P6,340,800

c. P6,479,800

d. P7,004,400

Reference no: EM133157957

Questions Cloud

What is the total amount of debenture bond : Baloc Company reported the following noncurrent liabilities on December 31, 2021; What is the total amount of debenture bond
Differences between proactive and reactive tna : What is the differences between proactive and reactive TNA. List and describe an example of each approach.
What are the constituents of the human capital management : Q1. What are the constituents of the human capital management of dunkin donuts?
Develop a series of training seminars : You and your team are employees at Coach 4 Life, a consulting company in downtown Toronto. Coach 4 Life's specialty is providing "soft skills" training to corpo
How much is the correct retained earnings : Profits before correction of errors were P492,000, P624,000, and P840,000 in 2022, 2023, and 2024, respectively. How much is the correct retained earnings
Employee drug testing : Employee Drug Testing 1. Drug testing only for probable cause.
Outline the key features of the australian legislation : Outline the key features of the following Australian legislation
Assessment strategies to support organisational requirements : Flexible learning, development and assessment strategies to support organisational requirements.
Identify three considerations caring for bariatric patients : Define obesity and identify three considerations when caring for bariatric patients and how these should be addressed to ensure the patient has the best health

Reviews

Write a Review

Accounting Basics Questions & Answers

  Using binomial pricing model estimate the fair value

The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year e..

  Does future behavior of market matter in selection process

How important is the general behavior of the market in affecting the price performance of mutual funds? Explain.

  The cost to winsor company of manufacturing 20000 units of

the cost to winsor company of manufacturing 20000 units of a particular part is 255000 of which 100000 is fixed and

  Briefly describe the fraud that occurred

Briefly describe the fraud that occurred Discuss what you see as weaknesses in the control environment.

  How much income must usco include

Question 1 An Indian corporation (IndiCo) is wholly owned by a US corporation (USCo). IndiCo purchases corn produced by USCo in the United States and resells it abroad. How is IndiCo's income treated for U.S. tax purposes if, alternatively:

  What the cost of sales of herbert co for the year

Selling expenses were equal to 16% of sales and 20% of the cost of sales. All other expenses were 3% of sales. The cost of sales of Herbert Co. for year 2022

  What-a-view cruises breach section of australian consumer

Did What-A-View Cruises breach section 18 of the Australian Consumer Law? Andrew is very excited about his upcoming 80th birthday party.

  How much income is each beneficiary entitled to receive

The Ricardo trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.

  What was cheerful color direct labor cost variance

Cheerful Colors paid workers $20/hour. What was Cheerful Color's direct labor cost variance for October

  What is the value of the february ending inventory

Sam's Wholesale Bikes, What is the value of the February ending inventory assuming that? Sam's uses the perpetual FIFO inventory? method?

  Analyse the current political situation in india country

Analyse the current political situation in India country? What opportunities and challenges does the current political situation create for Samsung Electronics.

  Compute the manufacturing overhead rate for the year

For the year, $349,663 of overhead costs are incurred and 132,600 hours are used. Compute the manufacturing overhead rate for the year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd