User Account

All Pages

What is the net effect of the errors on the profit

Assignment Help Accounting Basics
Reference no: EM133169598

Question - 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 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 profit?

a. P572,000

b. (P572,000)

c. P563,400

d. (P563,400)

2. What is the net effect of the errors on the 2024 profit?

a. (P78,000)

b. P78,000

c. P60,000

d. (P60,000)

Reference no: EM133169598

Questions Cloud

Dargeangrix process : Explain your idea for improving a DargeanGrix process. Explain why your idea can help move the organization or department forward.
Publicly traded company that issues bonds : Choose a publicly traded company(Target) that issues bonds. How would a potential investor determine the value and risk of the bond?
Personal ethics and business ethics : Financial executives insist that there should be no separation between an individual's personal ethics and his or her business ethics.
Poisson and negative exponential distributions : When are the Poisson and negative exponential distributions used? Provide an example from any real-world experience
What is the net effect of the errors on the profit : Profits before correction of errors were P492,000, P624,000, and P840,000 in 2022, 2023, and 2024, What is the net effect of the errors on the 2024 profit
Compute flint weighted-average accumulated expenditures : Flint Company is constructing a building. Construction began on February 1 and completed on December 31. Compute Flint weighted-average accumulated expenditures
Prepare martinez entry to record the exchange : The new truck is worth $39,550. Martinez also made a cash payment of $37,290. Prepare Martinez's entry to record the exchange
Explain the best interests requirement : Explain the 'best interests requirement' and why you did not appear to comply with Section 961B(2) of the Corporations Act
What amount should brye report as current income tax expense : Brye made estimated tax payments during Year 4 of $25,000. What amount should Brye report as current income tax expense for Year 4

Reviews

Write a Review

Accounting Basics Questions & Answers

  You are a new staff accountant with a large regional cpa

you are a new staff accountant with a large regional cpa firm participating in your first audit. you recall from your

  Discuss the market rate at the date of issue

The bonds are dated April 1, 2016 so these bonds are issued on an interest date. The market rate at the date of issue

  Determine and calculate the profit margin

A company had 7,040,000 in net income for the year. It's net sales were 15,600,000 for the same period. Calculate its profit margin.

  How many units will be showing as in stock on may

ABC Inc. had 150 necklaces in stock on May 5, 2019. How many units will be showing as in stock on May 15, if ABC Inc. uses: (a) a Perpetual system

  Accurate metal company sold

Compute the manufacturing margin for the company under variable costing.$12,950,000$7,215,000$6,882,000$6,475,000$6,142,000

  What the appraised value using the cost approach

The appraiser expects this will reduce NOI by $30,000 per year. Land for a similar use is valued at $1.8 million. What the appraised value

  Make statement of changes in partners capital for the year

Make statement of changes in partners' capital for the year ended December 31, 2016. (Round answers to 0 decimal places, e.g. 5,125.)

  Determine the classification of the lease option

Determine the classification of the lease option being considered, and indicate what the effect would be on the statement of financial position

  What would be the maximum deduction

No other vehicles were in the pool. The new passenger vehicle cost $35,000. What would be the maximum deduction that would be claimed in the year

  What is the average customer waiting time

The average daily demand is 150 customers. The convenience store currently operates 6 hours a day. Each order takes approximately 2 minutes. a. What is the average customer waiting time, in minutes?

  Who coined the phrase white collar crime

Who coined the phrase "white collar crime?" Which would not fall under corruption? Falsifying performance. /Conflict of interest

  Middletown usa currently has a population of 15 million

middletown usa currently has a population of 1.5 million people. it has been one of the fastest growing cities in the

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