Belarus Company, your client, failed to record accrued rent income of P 25,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 25,000 at the end of year 2022 as a result of the error? [Select ] Question 2: Which of the following accounts is(are) overstated by P 25,000 at the end of year 2023 as a result of the error? [Select ] Question 3: What would be the adjusting entry if the error is discovered in year 2022? V [ Select ] Debit Rent Income, P 25,000; Credit Retained Earnings, P 25,000 Questic ntry if the error is discovered in year 2023? No AJE is necessary because the error already Questic ntry if the error is discovered in year counterbalanced. 2024? bit - Retained Earnings, P 25.000: Credit Rent Income

Belarus Company, your client, failed to record accrued rent income of P 25,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) understated by P 25,000 at the end of year 2022 as a result of the error? [Select ] Question 2: Which of the following accounts is(are) overstated by P 25,000 at the end of year 2023 as a result of the error? [Select ] Question 3: What would be the adjusting entry if the error is discovered in year 2022? V [ Select ] Debit Rent Income, P 25,000; Credit Retained Earnings, P 25,000 Questic ntry if the error is discovered in year 2023? No AJE is necessary because the error already Questic ntry if the error is discovered in year counterbalanced. 2024? bit - Retained Earnings, P 25.000: Credit Rent Income

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

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