Borgen Ltd prepared draft financial statements for the most recent year, which reported a profit for the year of £60,000. A subsequent check of the financial statements found the following errors: 1. Directors' salaries of £55,000 had been treated as rent payable. 2. Routine repairs to a machine for £4,000 had been added to the cost of the machine and had been depreciated at the rate of 25 per cent on cost. 3. A dividend paid of £10,000 had been reported as a dividend paid of £1,000. 4. A bad debt of £5,000 had not been recognised. The company pays corporation tax of 20 per cent on reported profits before tax. Required: What will be the profit for the year after the above errors have been corrected?

Borgen Ltd prepared draft financial statements for the most recent year, which reported a profit for the year of £60,000. A subsequent check of the financial statements found the following errors: 1. Directors' salaries of £55,000 had been treated as rent payable. 2. Routine repairs to a machine for £4,000 had been added to the cost of the machine and had been depreciated at the rate of 25 per cent on cost. 3. A dividend paid of £10,000 had been reported as a dividend paid of £1,000. 4. A bad debt of £5,000 had not been recognised. The company pays corporation tax of 20 per cent on reported profits before tax. Required: What will be the profit for the year after the above errors have been corrected?

Principles of Accounting Volume 1

19th Edition

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Author:OpenStax

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Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 18EA: Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The...

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Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The company had a great year and earned a net income of $80,000. However, the companys controller determined that it had made an error when calculating depreciation in the preceding year, resulting in an understated depreciation expense amount of $2,000. What is the ending retained earnings balance?
X Ltd. made a profit of Rs. 1,00,000 after charging Depreciation of Rs. 20,000 on assets and a transfer to General Reserve of Rs. 30,000. The goodwill written off was Rs. 7,000 and the gain on sale of Machinery was Rs. 3,000. The other information available to you (changes in the value of Current Assets and Current Liabilities) is as follows: At the end of the year, Debtors showed an increase of Rs. 6,000; Creditors as the increase of Rs. 10,000; Prepaid Expenses an increase of Rs. 200; Bills Receivable a Decrease of Rs. 3,000; Bills Payable a Decrease of Rs. 4,000 and Outstanding Expenses a Decrease of Rs. 2,000. Ascertain the cash flow from the operating activities. handwritten answers are not allowed ..use tables
Tired Company’s assets for the current year decreased by P135,000 while its liabilities increased by P25,000. During the year, the owner withdrew P12,000 and made additional investment of P17,000. How much is the net income (loss) for the year? (P165,000) (P105,000) (P115,000 (P110,000)
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The Azuza Company owns no plant assets and had the following income statement for the year: Sales revenue $930,000 Cost of goods sold $650,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 12,000 914,000 Net income $16,000 Additional information about the company includes: End ofYear Beginning ofYear Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 9,000 7,000 Accounts payable 22,000 30,000 Wages payable 9,000 7,000 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate.

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Principles of Accounting Volume 1

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9781947172685

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bartleby, a Learneo, Inc. business

1.	Directors' salaries of £55,000 had been treated as rent payable.
2.	Routine repairs to a machine for £4,000 had been added to the cost of the machine and had been depreciated at the rate of 25 per cent on cost.
3.	A dividend paid of £10,000 had been reported as a dividend paid of £1,000.
4.	A bad debt of £5,000 had not been recognised.