Cebu Company reported a retained earnings balance of P5,000,000 at January 1, 2020. In August 2020, Cebu determined that insurance premiums of P600,000 for the three-year period beginning January 1, 2019, had been paid and fully expensed in 2019. Cebu has a 30% income tax rate. What amount should Cebu report as adjusted beginning retained earnings in 2020?
Cebu Company reported a
What amount should Cebu report as adjusted beginning retained earnings in 2020?
Kentucky Enterprises purchased a machine on January 2, 2019, at a cost of P120,000. An additional P50,0 was spent for installation, but this amount was charged erroneously to repairs expense. The machine has a useful life of five years and a residual amount of P20,000. As a result of the error,
Retained earnings at December 31, 2020, was understated by P38,000 and 2020 income was overstated by P6,000.
O Retained earnings at December 31, 2020, was understated by P30,000 and 2020 income was overstated by P10,000.
O Retained earnings at December 31, 2020, was understated by P30,000 and 2020 income was overstated by P6,000.
2019 income was understated by P50,000.
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