3. What is the carrying amount of accumulated depreciation as of December 31, 2022?Items 3-4. On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. Themachine is depreciated on the straight line method over a four-year period with no residual value.Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements.The oversight was discovered during the preparation of the 2022 financial statements.a. 500,000b. 1,000,0000.0d. 2,000,000 1. What amount should be reported as the pretax cumulative effect of this accountingchange?During 2021, Revel Company decided to change from the FIFO method of inventoryvaluation to weighted average method.a. 400,000b. 300,000c. 600,000d. 500,000January 1 inventoryDecember 31 inventoryFIFO7,200,0007,900,0002. What total amount should be reported as prior period error in the financial statementsfor the year ended December 31, 2020?a. 1,400,000b. 600,000WEIGHTED AVERAGE7,700,0008,300,000ABC Company reported the ff events during 2020:• It was decided to write off 800,000 from inventory which was over two years oldas it was obsolete.c.800,000d. 200,000• Sales of 600,000 had been omitted from the financial statements for the yearended December 31,2019

Name: 3. What is the carrying amount of accumulated depreciation as of Dece
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: 3. What is the carrying amount of accumulated depreciation as of December 31, 2022?Items 3-4. On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. Themachine is depreciated on the straight line method over a four-year period

“Since you have asked multiple question, we will solve the first question for you. If you want any…

Business

Accounting

3. What is the carrying amount of accumulated depreciation as of December 31, 2022? Items 3-4, On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. The machine is depreciated on the straight line method over a four-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements. The oversight was discovered during the preparation of the 2022 financial statements. a. 500,000 b. 1,000,000 0.0 d. 2,000,000

3. What is the carrying amount of accumulated depreciation as of December 31, 2022? Items 3-4, On January 01, 2021, Jaz Company acquired a machine at a cost of P2,000,000. The machine is depreciated on the straight line method over a four-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in the 2021 financial statements. The oversight was discovered during the preparation of the 2022 financial statements. a. 500,000 b. 1,000,000 0.0 d. 2,000,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 28CE: Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020....

See similar textbooks

Similar questions

Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
If a group of inventory items costing $15,000 had been omitted from the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.1
If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2020, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the FIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Koopman is subject to a 21% income tax rate in all years; it pays the income taxes payable of a current year in the first quarter of the next year. Koopman had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Koopman had cash of 10,000, inventory of 24,000, other assets of 70,800, accounts payable of 4,500, and income taxes payable of 6,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in methods at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
Schmidt Company began operations on January 1, 2018, and used the LIFO inventory method for both financial reporting and income taxes. However, at the beginning of 2020, Schmidt decided to switch to the average cost inventory method for financial and income tax reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the LIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Schmidt is subject to a 21% income tax rate in all years; it pays all income taxes payable in the next quarter. Assume that any deferred tax liability was paid in the subsequent year. Schmidt had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Schmidt had cash of 15,600, inventory of 34,000, other assets of 76,000, income taxes payable of 4,200, and accounts payable of 3,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in method at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020. Early in 2020, McLelland discovers that the December 31, 2019 ending inventory was overstated by $20,000. For simplicity, ignore taxes. Required: 1. What is the correct net income for 2019? For 2020? 2. Assuming the error was not corrected, what is the effect on the balance sheet at December 31, 2019? At December 31, 2020?
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
If a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2
If Barcelona Companys ending inventory was actually $122,000, but the cost of consigned goods, with a cost value of $20,000 were accidentally included with the company assets, when making the year-end inventory adjustment, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olsons records: Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. 2. Prepare the appropriate disclosures for the 2021 annual report if Olson uses current cost internally and LIFO for financial reporting.
Which of the following financial statements would be impacted by a current-year ending inventory error, when using a periodic inventory updating system? A. balance sheet B. income statement C. neither statement D. both statements