Reference no: EM132652445
The Al Right Company made the following errors that were discovered by the auditors in connection with preparation of the December 31, 2020, income statement. It reported net income of P70,000 for 2019 and P100,000 for 2020. Ignore income taxes.
(1) On January 1, 2019, the company recorded the P30,000 acquisition cost of equipment with a ten-year life as maintenance expense. Straight-line depreciation is usually used and no residual value is expected at the end of the useful life.
(2) On January 1, 2019, Al Right Company collected P10,000 for two years' rental income in advance and failed to set up an unearned revenue account at year-end. It credited all the rent to Rent Revenue when received.
(3) A three-year insurance policy costing P12,000 was charged to expense when paid in advance on January 1, 2019.
(4) Ending inventory was overstated by P7,000 on December 31, 2019, and understated by P3,000 on December 31, 2020, due to computational errors.
(5) Accrued wages expense was omitted in the amount of P7,000 on December 31, 2019, and P8,000 on December 31, 2020.
Question 1: Complete the schedule to show the computation of the correct income for 2019 and 2020
|
What is the collections during the year
: What is the collections during the year? Deferred Gross Profit, December 31 Adjusted 216,000. Fair value of repossessed merchandise 225,000
|
|
What is the fair market value of the machine received
: On March 1, 2016, the GABRIEL Company sold machine for P 155,000. What is the fair market value of the machine received.?
|
|
What is the over-allowance granted by bullock
: What is the over-allowance granted by BULLOCK on the trade-in transaction? BULLOCK Inc. sells automatic weapons costing P 700,000
|
|
Problem solving in networked application management
: Apply socio-technical contexts in modern network applications and management - develop skills of analysing critically, and problem solving in regard
|
|
Show the computation of the correct income
: Complete the schedule to show the computation of the correct income for 2019 and 2020. The Al Right Company made the following errors that were discovered
|
|
How to identify three areas of compliance could monitor
: Identify three areas of compliance you could monitor when you deal with budget and explain how you would ensure that regulations are being adhered to.
|
|
How to identify three areas of compliance could monitor
: Identify three areas of compliance you could monitor when you deal with budget and explain how you would ensure that regulations are being adhered to.
|
|
How do calculate z for cheryl
: Calculate Z for Cheryl. At time 3, Gomer deposits 730 into a different bank account that credits simple interest at an annual rate of y%.
|
|
What is fair value and is a good idea
: Implying a focus on the income statement, and lenders need an up-to-date indication of asset values, implying a focus on the balance sheet. Discuss.
|