Colorado Corporation for the year ended December 31, 2021, you discovered that certain accrued income and expenses were overlooke
Q: On January 1, 2022, Isabel Company purchased bonds with face amount of P8,000,000 for P7,679,000 to ...
A: The question is based on the concept of Financial Instruments. Financial Assets are investment asset...
Q: Jade, Kale, And Lilo are in the process of liquidating their partnership. The balance sheet and the ...
A: Liquidation means where the company affair has been closed and payment is made to the outside liabil...
Q: Prepare an income statement for August. Monty Corp. Income Statement For the Month Ended August 31, ...
A: >Income Statement is one of the financial statement. >It shows various revenues and expens...
Q: What is the principal amount of the investment?
A: Investment refers to those mechanism which is used by the company for the purpose of generating inco...
Q: Question 1: For an individual who is 45 years of age and has taxable earnings of $27,400, the annual...
A: A Payroll deduction IRA is an retirement arrangement. The contribution limit to payroll deduction...
Q: Martin Jackson receives an hourly wage rate a week. Payroll data for the current week are
A: In this question, we have to find out how much amount is paid to be Jackson.
Q: Which of the following is TRUE of capital gains taxes for domestic corporations? A. They are ex...
A: Capital gains tax is the amount of tax charged by receiving the capital gains such as gain on sale o...
Q: Bramble Corp. had the following information in its financial statements for the years ended 2020 and...
A: Rate of Return = Net income / Common stock = (97,900 - 14,300) / (100,900*10) = 8.28%
Q: QUESTION S fa company has non-cument assets worth 753, current kabites worth 378, longlerm labites w...
A: Lets understand the basics. As per balance sheet equation, all the asset equals to liabilities and e...
Q: The following information is available for Sheffield Corp.: January 1, 2021 Shares outstandi...
A: Treasury stock: Shares which are bought back by the company from the open market but not retired fro...
Q: Bev bought a small mom and pop grocery store. The sale was completed and Bev obtained ownership on J...
A: Intangible Assets: An intangible asset is an asset that needs real substance. This is as opposed to ...
Q: Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overh...
A: Indirect factory wages = $30,240 x 8,860 hours / 8,400 hours = $31,896 Power light = $20,160 x 8860/...
Q: Question 2: If an individual whose filing status is single earns $256,000 during the year, what port...
A:
Q: Indirect material, pounds per unit 0.15 Indirect material, cost per pound $2 Indirect labor hours 1 ...
A: solution: A flexible budget is a budget that is flexible for volume or level of activity. This is ba...
Q: Zebra Company has determined the 2021 net income to be P 5,000,000. Revenue received in advance in 2...
A: The unearned revenue is the revenue received in advance from customers but the services are not prov...
Q: A Bank granted a loan to a borrower in the amount of P5,000,000 on January 1, 2021, The interest rat...
A: Solution Carrying amount is the cost of an asset less accumulated depreciation.
Q: Question: Prepare a balance sheet as of the end of the first month based on the information Mrs. Hi...
A: Cash is calculated as a balancing figure.
Q: Bramble Corp. had the following information in its financial statements for the years ended 2020 and...
A: Rate of return on common stock equity = (Net income - preferred dividend) / Average Common stockhold...
Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gid...
A: The correct answer is option Account Title Debit Credit Allowance for doubtful accounts 2300 ...
Q: Jade, Kale, And Lilo are in the process of liquidating their partnership. The balance sheet and the ...
A: Liquidation of Partnership For liquidating the partnership it settle the all expenses and dues which...
Q: The Stewart Cake Factory sells chocolate cakes, birthday decorated cakes, and specialty cakes. The f...
A: Contribution is the amount left after all direct costs have been subtracted from sales price. The ne...
Q: 4
A: Balance of Trade is the difference between exports and imports of physical goods. It does not includ...
Q: How much is the amount limit for representation and entertainment expense in Philippine peso? And wh...
A: Given Representation and Entertainment expense per ITR = 132,067 Net revenue as per ITR = 9683516 In...
Q: Jessie Company purchased an investment property on January 1, 2020 at a cost of P2,200,000. The prop...
A: Given information, Cost of the property =P2,200,000 Fair value of the property =P3,000,000 Useful li...
Q: under each of the E assumption: s paid cash of P1C
A: B. The capital balance of each partner is shown as,
Q: 1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (...
A: Since you have posted multiple questions , we will do the first question for you . To get the remain...
Q: The Fuller Company has provided the following information Month Direct Labour Hours 23,000 26,400 18...
A: Lets understand the basics. In high-low method, fixed cost and variable costs are separated. Formul...
Q: RJD Corporations had the following authorized capital on December 31, 2020: 10,000 shares of $100 pa...
A: GIVEN RJD Corporations had the following authorized capital on December 31, 2020:10,000 shares of ...
Q: Question 4: Of the cafeteria plans listed, which is NOT a voluntary nontaxable deduction? Answer: А....
A: In this question we choose that which one is nontaxable deduction.There are four options medicare, ...
Q: Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an e...
A: Solution: Flexible budget is the budget based on various level of activity to know what will be th...
Q: On January 1, 2025, Ariana Corporation issued its 8%, 5-year convertible debt instrument with a fac...
A:
Q: Copley Corporation is preparing their financial statements for the year ending February 28, 2022. C...
A: Introduction Earning per Share (EPS) is the profit per outstanding share, it can be calculated as fo...
Q: • Accrual Criterion and Progressivity. Let's consider William, which Salary is 200. Three years ago ...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: Question 3: The annual contribution limit to a 401(k) plan is Answer: А. S6,000 В. S7,000 С. $13,500...
A: 401(K) is am retirement savings and investment plan offered by employer to employees.
Q: Institution-based view argues that the success and failure of firms are enabled and constrained by i...
A: Institution-based view refers to the view that devises strategic choices as a product of the dynamic...
Q: Question: Prepare her income statement for the first month We are at the end of the first month of ...
A: Income Statement: As a part of the Financial Statement, the Income statement shows the total income ...
Q: Date Blankets Units Cost May 3 Purchase $15 10 Sale 17 Purchase 12 $18 20 Sale 23 Sale 30 Purchase $...
A: Formula: LIFO: LIFO stands for Last in First out. Which means last received inventory to be sold fir...
Q: Sb 5-4 Calculate SUTA Tax r each of the following independent circumstances calculate the SUTA tax o...
A: Under the provisions of SUTA The maximum earnings subject to tax is $8500 Computation of taxable ear...
Q: for the next 29 years. At a 7 percent discount rate, the present value of the lease payments totals ...
A: Expenditure A/C dr. 23,000,000 Cash A/C. Cr 1732,231 Other f...
Q: Lens Junction Direct Materials Budget for Solution For the Two Months Ending February 28, 20XX Janua...
A: Budget means the expected value of future. Budget is not affected by the actual value as it is prepa...
Q: Prime company had the following financial data for the year (in thousands BD): Owner's investment 20...
A: The ending capital is calculated after making adjustments for additional investment, Withdrawals, pr...
Q: 7. Answer the following questions, considering each situation independently. You might not be able t...
A: Given Profit =$200,000
Q: 1. The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and administr...
A: Contribution margin = Sales - Total Variable cost Total Variable cost = P325,000 + P210,000 Total ...
Q: I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa an...
A: The question is based on the concept of Cost Accounting.
Q: Mr. Espiritu is a resident Filipino citizen. He purchased a parcel of land in Makati City in 1970 at...
A: Capital Gain refers to the difference between the sale and purchase of assets.
Q: One Device makes universal remote controls and expects to sell 550 units in January, 750 in February...
A: The production budget, also called the manufacturing budget, is a budget that determines the quantit...
Q: Selected data from Design Corporation for 2016 is as follows: Inventories Beginning $34,000 Ending $...
A: Manufacturing cost= Prime cost + manufacturing overheads Manufacturing overheads= Indirect Material+...
Q: Numbers 4-5 On August 31, 2023, an entity discounted with recourse a note at the bank at discount ra...
A: Given information, Face amount =P9,000,000 Discount rate=15% Interest rate =12%
Q: Question 22: What type of institution might offer a 403(b) plan to its employees? Answer: A. A small...
A: This 403 (b) plan is a plan which is related to retirement account. these plans are specific for org...
During your audit of the books of Colorado Corporation for the year ended December 31, 2021, you discovered that certain accrued income and expenses were overlooked at the end of 2019, 2020 and 2021.
| Not recognized at year end | 2019 | 2020 | 2021 |
| Accrued interest income | 2,000 | 3,000 | |
| Accrued salaries expense | 12,000 | 6,000 | |
| Accrued rent payable | 20,000 | ||
| Net income for the year | 500,000 | 550,000 | 600,000 |
| 8,300,000 | 8,800,000 | 9,200,000 |
REQUIRED:
Based on the foregoing, compute the corrected balances of following:
- Net income for 2019
- Net income for 2020
- Net income for 2021
Step by step
Solved in 2 steps
- Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively', in the following year when paid or collected. The reported pretax income was 20,000 in 2018, 25,000 in 2019, and 23,000 in 2020. Required: 1. Compute the correct pretax income for 2018, 2019, and 2020. 2. Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes. 3. Prepare the journal entries necessary in 2021 if the errors are discovered at the end of that year. Ignore income taxes.Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
- During your audit of the books of Alarcon Corporation for the year ended December 31, 2021, you discovered that certain accrued expenses were overlooked at the end of 2014, 2015 and 2016. Not recognized at year end 2019 2020 2021 Accrued salaries expenses 15,000 10,000 12,000 Accrued rent expense 25,000 Accrued interest payable 2,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021 Retained Earnings as of December 31, 2019 Retained Earnings as of December 31, 2020 Retained Earnings as of December 31, 2021You were asked by your audit client Panga Inc., to assist them in preparing its income tax return for the period ended December 31, 2021. You investigation revealed the following information: Pre-tax financial income P10,000,000 Estimated litigation loss recognized as a provision for the current year 600,000 Accrued rental income 1,200,000 Prepaid operating expenses 250,000 Unearned rental income 300,000 Dividend income from domestic corporation 500,000 Life insurance expense 300,000 Current income tax is 25% and is expected to remain in 2022 but will increase to 30% in 2023. Assuming all temporary differences will clear by 2022, what is the total tax expense for the year?A corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019 together with its required attachments such as the Audited Annual Financial Statements. On March 17, 2020, the company’s accountant discovered an error for excluding a sales amounting to 7,500,000 which comprises a 30% under declaration of sales. a. What necessary action must be done by the company in relation to its discovery? b. Assume that the company was subjected to a BIR audit or was issued a Letter of Authority (LOA) prior to the amendment of its Annual Income Tax Return, is the company allowed to make any amendment? Justify your answer
- The XR Company’s Financial Year Ended on December 31, 2021. However, before the completion of the audit in February 2023 it was determined the company lost a case that was at court before the end of the financial year, but the outcome was uncertain. The auditor will disclosed this information as: a. An unusual occurrence b. A tax liability for the company c. A subsequent event. d. An annual expenseA corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019 together with its required attachments such as the Audited Annual Financial Statements. On March 17, 2020, the company’s accountant discovered an error for excluding a sales amounting to Php7.5M which comprises a 30% under declaration of sales. 1. What necessary action must be done by the company in relation to its discovery? 2. Assume that the company was subjected to a BIR audit or was issued a Letter of Authority (LOA) prior to the amendment of its Annual Income Tax Return, is the company allowed to make any amendment?During an audit of Madison Company's December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison's financial records. Madison's net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. 1) General Journal (8) 2) Statement of Retained Earnings (7)
- During an audit of Madison Company’s December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison’s financial records. Madison’s net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. 2. Prepare the statement of retained earnings for 2020.During an audit of Madison Company’s December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison’s financial records. Madison’s net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. For grading purposes, prepare four separate entries dated December 31. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8During an audit of Madison Company’s December 31, 2020 records it was discovered that the company did not accurately accrue for $12,500 of depreciation expense. The accrual of interest expense of $4,500 was also omitted. These errors occurred in 2019 and have a material impact on Madison’s financial records. Madison’s net income for the year was $123,000. The company is subject to a 35% tax rate. The company had a retained earnings balance of $557,500 on January 1, 2020. No dividends were paid. Required: 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. 2. Prepare the statement of retained earnings for 2020. 1. Prepare the necessary journal entries to correct the accounting records of Madison Company’s books. For grading purposes, prepare four separate entries dated December 31. General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2…
