In 2021, Winslow International, Inc.’s controller discovered that ending inventories for 2019 and 2020 were overstated by $290,000 and $590,000, respectively. Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.)

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A: calculation of accounts payable are as follows

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A: The allowance for doubtful account is maintained to record the bad debt expense for the firm. The…

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A: Net profit means the difference between the income and expenses.Net profit after taxes means the…

Q: On December 31, 2018, Alan and Company prepared an income statement and balance sheet but failed to…

A: ADJUSTING ENTRIES ARE THE JOURNAL ENTRIES MADE AT END OF THE ACCOUNTING PERIOD TO ALLOCATE THE…

Q: A company reports 2021 pretax accounting income of $10 million, but because of a single temporary…

A: Deferred tax liability: When Income Tax Expense account is less than the Income Tax Payable account,…

Q: On December 31, 2021, Alan and Company prepared an income statement and balance sheet but failed to…

A: Adjusting entries are passed at the end of the reporting period to record the accrual of incomes,…

Q: The before-tax income for Hawks Corp. for 2019 was $101,000; for 2020, it was $77,400. However, the…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its…

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Q: The balance in ABC Company's accounts payable account at December 31, 2021, was P900,000, before any…

A: Accounts Payable: Accounting for accounts payable (AP) is the collection of money owed to vendors…

Q: Trout Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting…

A: Compute the LIFO reserve.

Q: Wheaton Inc. reported the following results for its first three years of operations:   2019 Income…

A: After-tax net income (loss) reported for 2020

Q: Ridley Corporation is in the process of adjusting and correcting its books at the end of  2020. In…

A: JF stands for Journal entries which refers to book of accounts or the original book of account and…

Q: At December 31, 2020, end of the annual reporting period, the accounts of ABC company showed the…

A: Accounts Receivable Receivable is considered to be one of the main sources income generation to the…

Q: Below are three independent and unrelated errors.   On December 31, 2020, Wolfe-Bache Corporation…

A: Financial statements: Financial statements are the final reports of a company, prepared at the end…

Q: On December 31, 2018, Alan and Company prepared an income statement and balance sheet but failed to…

A: Preparation of the table to show the effects of the four adjusting journal entries. We have,

Q: The balance of Ward Company’s Accounts Payable at December 31, 2019 was P1,300,000 before any…

A: The P 34,000 amount is not included in accounts payable at 12/31 because the title did not pass to…

Q: onsidered in item 4. 1. The company did not accrue sales commissions payable at the end of each of…

A: Journal entry: The act of recording or keeping track of any financial or non-financial action is…

Q: At December 31, 2019, the advertising expense account of COURAGE Company had a balance of P164,000…

A: Any amount of money spent to generate the revenues in a business is known as expenses.

Q: On December 31, 2020, Mickelson, Inc. fails to properly accrue incurred but unpaid year-end wages.…

A: As wages has not been paid and it is related to 2020 year. Hence following accrual entry should be…

Q: At December 31, 2020, end of the annual reporting period, the accounts of ABC company showed the…

A: Part-1) Bad Debt Expense = Amount to be written off - Allowance for Doubtful Debts Part-2a) Bad Debt…

Q: your client, failed to record accrued salaries expense of P 50,000 as of December 31, 2022.   Based…

A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…

Q: On January 1, 2021, Stand Company changed to the percentage of completion method of income…

A: Since the change in method has only been done for accounting purpose not for tax reporting purposes,…

Q: Ridley Corporation is in the process of adjusting and correcting its books at the end of 2020. In…

A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

Q: During 2020, Wagner Converting discovers that a computational error was made on its 2019 financial…

A: As per IAS 8 Accounting policies, changes in accounting estimates and errors.  The errors that…

Q: The adjusted trial balance of ABC Co. included the following expenses for 2020: Accounting and legal…

A: Administrative expense: It is an expense that is not tied up with the function like production or…

Q: SANDHILL corporation reported the following results for its first three years of operations  2020…

A: Note: It is assumed that the corporate tax rate for 2020 and 2021 is 20% and for 2022 is 30%.

Q: During 2019, P determined that insurance premiums of $12289 for the 3-year period beginning January…

A: Given, Insurance premiums paid for 3 years=$12,289Income tax rate=37%

Q: Below are three independent and unrelated errors. a. On December 31, 2020, Wolfe-Bache Corporation…

A: We have the following information On December 31, 2020, Wolfe-Bache Corporation failed to accrue…

Q: Mar Company provides the following information on December 31, 2020: Income taxes withheld from…

A: Current liabilities are those types of obligations that must be fulfilled within a year. Creditors,…

Q: Cullen Construction Company, which began operations in 2020, changed from the completed-contract to…

A: (a)Calculate amount of net income that would be reported in 2021:Net income = Income before income…

Q: On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $1,450. In…

A: Answer 1) Error a Income Statement - Income will be shown at a higher side by $ 1450. Balance…

Q: 9) At the end of its 2020 fiscal period, Barton's Books, a sole proprietorship, has ending accounts…

A: Accounts Receivable While using the Accounts receivable management it is provide the provision of…

Q: Chateau Corporation has reported pre-tax income of $250,000 on December 31, 2021, before considering…

A: Adjusting entries are those entries which are passed at the end of the period in order to reflect…

Q: An error considered material of $50,000 (net of tax) to Casey Mar Corp. was discovered in 2020 that…

A:

Q: The Jamesway Corporation had the following situations on December 2021.   Employee salaries for…

A: Interest expense must be recognized on December 31, 2021 = $60,000 x 8% x (4 months /12 months)…

Q: At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of…

A: Taxable income = Pretax financial income + Estimated expenses deducted but not yet paid - Extra…

Q: The Meow Company was organized on January 1, 2020, and since its inception has not recognized…

A: prepaid expenses are expenses related to future years but paid in advance. Unearned Income is the…

Q: At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended…

A: The numerical has covered the concept of Accounts Receivable. An allowance for doubtful debt…

Q: During the adjusting process on December 31, 2019, Gopher Company estimates that 3 percent of their…

A: Case 1: Sales Revenue = $435,000 Return % = 3% GP = 40%

Q: In 2021, Winslow International, Inc.’s controller discovered that ending inventories for 2019 and…

A: Retained earnings is an account presented under liabilities and equity section of a balance sheet.…

Q: Orange Company's accounts payable balance at December 31, 2021 was P540,000 before the year-end…

A: Solution: Amount of accounts payable to be reported by Orange company in statement of financial…

Q: Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had…

A: Prior period adjustment: It refers to the adjustment made in the current year to rectify the error…

Q: In December of 2019, a company received consulting services of $100,000. No entry was recorded for…

A: The expenses shall be recorded in the period to which they belongs, otherwise this may impact the…

Q: The balance in Viray Company's accounts payable account at December 31, 2021 was P900,000, before…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: During 2020, a construction company changed from the completed-contract method to the…

A:

Q: Yellow Company reported accounts payable on December 31, 2017 at P900,000 before any necessary…

A: The FOB shipping point states that the buyer becomes the owner as soon as goods are reached to…

Q: Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had…

A: Requirement 1:

Q: VICO, Inc. is preparing its financial statements for the year ended December 31, 20x9, Accounts…

A: Accounts payable is the current liability that an entity has to pay within a period of one year or…