User Account

All Pages

What is the effect of the errors to working capital

Assignment Help Managerial Accounting
Reference no: EM132775418

Net income for Escudo Company for the years 2019 and 2020 is shown below. An audit of the accounts, however, disclosed the following information:

                                          2019                   2020

Net income after tax      P 24,650        P 31,250

Inventory understatement at year-end 2,500

Typewriter purchased at year-end charged

to expense (10-year life) 4,000

Merchandise purchased on account not

recorded as liability but included

in the inventory (5,000)

Unearned rent received taken up as income (1,800)

Accrued taxes unrecorded (3,000)

Problem 1. The correct net income for 2019 is

a. P23,650 b. P24,250 c. P28,250 d. P33,250

Problem 2. The correct net income for 2020 is

a. P33,550 b. P28,250 c. P25,350 d. P23,550

Problem 3. What is the effect of the above errors to the 2020 beginning retained earnings?

a. P1,400 overstated

b. P4,000 understated

c. P3,600 understated

d. P1,000 overstated

Problem 4. What is the effect of the above errors to 2020 working capital?

a. P2,300 understated

b. P2,300 overstated

c. P4,800 understated

d. P4,800 overstated

Problem 5. What is the effect of the 2019 errors to 2020 net income?

a. P400 overstatement

b. P400 understatement

c. P4,600 overstatement

d. P4,600 understatement

Reference no: EM132775418

Questions Cloud

Describe a surface protein from streptococcus pyogenes : Describe a surface protein from Streptococcus pyogenes that has multiple roles in pathogenicity of this bacterium. Briefly describe the structure and three func
Provide an example of a pathogen escape strategy : Provide an example of a pathogen escape strategy that does not involve killing the host cell. Name the pathogen that employs this strategy
What is the initial cost of the building : The building is held to earn lease rentals and for capital appreciation. An appropriate discount rate is 10%. What is the initial cost of the building?
Why different powered objectives lenses : In my own words explain why different powered objectives lenses on a microscope is crucial to microbiology.
What is the effect of the errors to working capital : What is the effect of the above errors to 2020 working capital? What is the effect of the above errors to the 2020 beginning retained earnings?
What pathogen causes chagas disease : Josh couldn't believe how much he had learned during his summer volunteer program working in a village clinic in northern Brazil. Even after completing
What differentiates algae from plants : Explain what differentiates algae from plants and two way they are different from protozoan.
What is the diagnostic test for cystic fibrosis : What is the diagnostic test for cystic fibrosis? What devices and treatments would a nurse expect someone with cystic fibrosis to use and how are they helpful?
How would suggest the order of the product : Next month demands for these four products are stable and are 150, 675, 525, and 375, respectively. How would you suggest the order of the product.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  A company manufactures two products

A company manufactures two products, X & Y. It uses three materials in its manufacture, A, B and C and both unskilled and skilled labour are used. The standard costs for both products for next year are as follows:

  Collegepak company-cost volume profit analysis

CollegePak Company produced and sold 60,000 units throughout the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold.

  What is the present value of the cash expenses paid

What is the present value of the $40,000 cash expenses paid annually? What is the present value of the investment? Based on the net present value

  Solve net present value of this investment opportunity

Oakmont Company, Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.)

  Create a report showing the spending variances for march

Create a report showing the spending variances for March.You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage

  Determine the asset turnover ratio

Financial statement data for the years ended December 31, 20Y7 and 20Y6, for Latchkey Company follow: Determine the asset turnover ratio

  Record as sales certain software awaiting sale

Record as sales certain software awaiting sale that is held in a public warehouse. Persuade suppliers to postpone billing until January 1.

  Determine the ending raw material balance for january

Determine the ending raw material balance for January, which you will need when preparing the Statement of Cost of Goods Manufacturing

  Determine which cost separation methods is being used

Determine which of the following cost separation methods is being used: the high-low method, the scattergraph method, or the method of least squares.

  Determine the cost of goods sold for january

Determine the Cost of Goods Sold for January and provide the Job number(s) in Cost of Goods Sold for January and determine the total cost of goods sold

  Difference between variable costing and full costing

Discuss the difference between variable costing and full costing. Why would income computed under full costing exceed income computed

  What the net present value of the project is closet to

The equipment that had been used could be sold for $29,000. The company's discount rate is 7%. The net present value of the project is closet to?

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