Elliott Corp. failed to record accrued salaries for 2016,$2,000; 2017, $2,100; and 2018, $3,900. What is the amountof the overstatement or understatement of Retained Earningsat December 31, 2019?
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Elliott Corp. failed to record accrued salaries for 2016,
$2,000; 2017, $2,100; and 2018, $3,900. What is the amount
of the overstatement or understatement of
at December 31, 2019?
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- 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 9,800Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000Dudley 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.
- At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.The company's equity and results (before tax) for the fiscal year 2021 are € 1,200,000 and € 390,000 respectively. How will these two sizes be formed (answer using a table) if there are the following observations of the statutory auditor: The company had created a provision for staff compensation for the first time with an amount of € 20,800 in 2017 and increased it by € 13,000 in 2020 and by € 3000 in 2021. According to an actuarial study, this provision at the end of the closed financial year 2021 should amount to € 44,800, of which € 33,500 concern the previous years. The company erroneously never depreciated the fixed asset acquired on 01/10/2019, with a purchase value of € 31,000 and a residual value of € 900. The useful life of this fixed asset is 12 years. During 2020, the company erroneously transferred to a multi-year / 5-year depreciation account an expense of € 16,000 Make as many annotations as necessary, and display your calculations. The answer must be in a table format…Based on the accounting records, the total assets book value as of January 1, 2021 is P1,875,362.99 but due to inflation the current cost is determined to be P1,990,800.21 while the total liabilities is P988,123.54 as of January 1, 2021. The company received additional investments of P651,345.22 during the year while dividends declared and paid is P450,650. At the end of the year, the books reported Total assets of P2,992,748.55 and liabilities of P1,555,661.24. What is the net income (loss) under the physical capital concept?
- The following information is from Amos Company for the year ended December 31, 2019. Prepare a statement of retained earnings for Amos Company. ∙ Retained earnings at December 31, 2018 (before discovery of error), $1,375,000. ∙ Cash dividends declared and paid during the year, $43,000. ∙ Two years ago, it forgot to record depreciation expense of $55,500 (net of tax benefit). ∙ The company earned $126,000 in net income this year.On December 31, 2019, Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified. Stevens Company Balance SheetFor Year Ended December 31, 2019 Current Assets: Current Liabilities: Inventory $ 6,000 Accounts payable $ 9,900 Accounts receivable 5,900 Allowance for doubtful accounts 800 Cash 2,300 Salaries payable 1,500 Treasury stock (at cost) 3,300 Taxes payable 2,500 Long-Term Investments: Long-Term Liabilities: Temporary investments in marketable securities 3,200 Bonds payable (due 2023) 11,000 Investment in held-to-maturity bonds 10,000 Unearned rent (for 3 months) 900 Property, Plant, and Equipment: Shareholders' Equity: Land 8,100 Retained earnings 24,200 Office supplies 800 Accumulated depreciation on buildings and equipment 9,200 Buildings and equipment 35,600 Additional paid-in capital on common stock 10,400 Intangibles:…While examining the accounts of Company on December 31, 2020, the following errors were uncovererd: Dividends of P100,000 had been declared on December 31, 2020 but was not recorded in the books. Improvements in Buildings and equipment for P480,000 had been debited to expense at the end of April in 2019. Improvements are estimated to have estimated life of 8 years. The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2019 and 2020, respectively Supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2019 and 2020, respectively. What is the net effect of the above errors in the 2019 net income? A.P435,500 understated B.P475,500 understated C.P463,500 understated D.P423,500 understated
- On December 31, 2022, Sheridan Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $159,000, total liabilities $74,200, and stockholders’ equity $84,800. The incorrect income statement showed net income of $74,200.The data for the three adjustments were: 1. Salaries and wages amounting to $10,600 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent payments of $8,480 were received for two months in advance on December 1. The entire amount was recorded as Unearned Rent Revenue when received. 3. Depreciation expense for 2022 is $9,540. Complete the following table to correct the financial statement amounts shown. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Item Net Income Total Assets Total Liabilities Stockholders’ Equity Incorrect balances…Zebra Company has determined the 2021 net income to be P 5,000,000. Revenue received in advance in 2021 of P 250,000 was credited to a revenue account when received. Of the total, P 50,000 was earned in 2021, P 120,000 will be earned in 2022 and the remainder will be earned in 2023. Loss on sale of equipment of P 150,000 in 2021 was erroneously debited to retained earnings. What is the adjusted net income for 2021? Group of answer choices 4,600,000 4,930,000 4,650,000 4,850,000On December 31, 2018, Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement, prepared on this incorrect basis, reported income before income tax of $26,000. The balance sheet (before the effect of income taxes) reflected total assets, $82,000; total liabilities, $36,000; and stockholders’ equity, $46,000. The data for the four adjusting journal entries follow:Effect of Amortization of $7,200 for the year on software was not recorded.Salaries and Wages amounting to $16,200 for the last three days of December 2018 were not paid and not recorded (the next payroll will be on January 10, 2019).Rent revenue of $3,600 was collected on December 1, 2018, for office space for the three-month period December 1, 2018, to February 28, 2019. The $3,600 was credited in full to Deferred Revenue when collected.Income taxes were not recorded and not paid. The income tax rate for the company is 30%.Complete the…
