Reference no: EM133126128
Question - Log Corp. reported pretax incomes of P4,545,000 and P3,483,000 for the years ended December 31, 2016 and 2017, respectively. Your audit however revealed the following errors:
a. Sales for 2016 included a P1,719,000 collection pertaining to a delivery made in January of 2017 under an FOB Shipping point freight term.
b. Inventory on December 31, 2016 was understated by P388,800 while inventory on December 31, 2017 was overstated by P255,000.
c. Interest expenses on Bonds for both years were recorded as payments were made every December 31. The bonds have a face value of P11,250,000 and pay a nominal interest rate of 6%. They were issued at a discount of P675,000 on January 1, 2015 to yield an effective interest rate of 7%.
d. Ordinary repairs to equipment had been charged to the Equipment account during 2016 to 2017. Repairs of P382,500 and P423,000 had been incurred in 2016 and 2017, respectively. In determining depreciation charges, Log uses the double declining balance method over 10 a ten-year asset useful life. The rate is being applied to the balance of the asset account at the end of each year.
Required -
1. What is the adjusted pretax income for 2016?
2. What is the adjusted pretax income for 2017?
|
Describe personality through clothing
: 1. How would you describe your personality through clothing?
|
|
Determine the interest rate you will pay
: Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual payments of $15,000 over 8 years
|
|
Elected legislative branch official to affect change
: During an election season town hall meeting, a hopeful politician seeking election to a legislature (representative democracy-federal- presidential style system
|
|
What should balance of the machine accumulated depreciation
: What should the balance of the machine's accumulated depreciation be on November 31, 2021, after posting the adjustment entry
|
|
What is the adjusted pretax income
: Sales for 2016 included a P1,719,000 collection pertaining to a delivery made in January of 2017. What is the adjusted pretax income
|
|
Calculate the firm profit
: It is demonstrated that some times extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a
|
|
Sanitisers at the outset of the pandemic
: At the outset of the COVID-19 pandemic the demand for hand sanitizers increased markedly around the globe resulting in retailers rationing supplies as well as h
|
|
Explain the importance of estimating quantities
: Recognise and explain the importance of estimating quantities and establishing the outline cost - Develop interpersonal skill through individual
|
|
Prepare appropriate journal entries recorded
: The computers were acquired by ComputerWorld at a cost of $101,000. Prepare appropriate Journal entries recorded by Nath-Langstrom Services for the first year
|