What is the profit for the year after adjusting

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Reference no: EM132750023

Problem - After the accountant of Samaras Co had prepared the financial statements for the year ended 31 January Year 7, the following errors came to light:

1. A motor van purchased at cost of $12,000 and with accumulated depreciation at the beginning of the year of $4,000 had been depreciated at 20% using the reducing balance method rather than the straight-line method of depreciation.

2. The payment of $1,500 for a trade payable had been treated as a cash purchase.

3. Withdrawals by the owner of $3,000 during the year had been treated as part of the salaries and wages expense.

4. Bank charges of $400 during the year had been treated as interest charges.

The profit for the year before these errors were discovered was $42,000. What is the profit for the year after adjusting for these errors?

Reference no: EM132750023

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