At 31 January 2020 the following trial balance was extracted from the books of Yusiti. Debit RM Credit RM Particulars Capital 1 February 2019 Vehicles at cost Equipment at cost Purchases and sales Provision for depreciation at 1 February 2019: 101,430 35,000 80,000 284,680 503,520 21,000 35,000 Vehicles Equipment 1,340 1,220 25,570 4,930 7,420 21,940 23,550 200 Return inward and return outwards 650 Finance expenses Stock at 1 February 2019 Vehicles expenses Rent, rates and insurance Office expenses Drawings Petty cash Wages and salaries Bad debts Debtors and creditors 95,370 1,240 83,210 14,880 680.550 680,550 18,950 Cash at bank TOTAL Additional information as at 31 January 2020: RM No. Particulars Stock valued at Insurance prepaid Goods taken from stock for own use Wages due 29,750 340 420 i. il. 2,400 620 iv. V. Provision for doubtful debt required vi. Provision for depreciation is to be provided as follows: straight line method reducing balance method 30% 25% Vehicles Equipment

At 31 January 2020 the following trial balance was extracted from the books of Yusiti. Debit RM Credit RM Particulars Capital 1 February 2019 Vehicles at cost Equipment at cost Purchases and sales Provision for depreciation at 1 February 2019: 101,430 35,000 80,000 284,680 503,520 21,000 35,000 Vehicles Equipment 1,340 1,220 25,570 4,930 7,420 21,940 23,550 200 Return inward and return outwards 650 Finance expenses Stock at 1 February 2019 Vehicles expenses Rent, rates and insurance Office expenses Drawings Petty cash Wages and salaries Bad debts Debtors and creditors 95,370 1,240 83,210 14,880 680.550 680,550 18,950 Cash at bank TOTAL Additional information as at 31 January 2020: RM No. Particulars Stock valued at Insurance prepaid Goods taken from stock for own use Wages due 29,750 340 420 i. il. 2,400 620 iv. V. Provision for doubtful debt required vi. Provision for depreciation is to be provided as follows: straight line method reducing balance method 30% 25% Vehicles Equipment

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...

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Errors During the course of your examination of the financial statements of Burnett Co., a new client, for the year ended December 31, 2019, you discover the following: Inventory at January 1, 2019, was understated by 6,000. Inventory at December 31, 2019, was overstated by 5,000. During 2019, the company received a 1,000 cash advance from a customer for merchandise to be manufactured and shipped during 2020. It had credited the 1,000 to sales revenue. The companys gross profit on sales is 50%. Net income reported on the 2019 income statement (before reflecting any adjustments for the above items) is 20,000. Required: Next Level What is the correct net income for 2019?
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