Interest receivable of P12,500 was not recorded on December 31, any for Case 3-Effects of The Statement of Comprehensive Income of Ma the years ended December 2019, 2020, and 2021 indicate the followin income: 2021- P367,000 2020-P402,000 2019-P320,000 An examination of the accounting records for these years indicates th several errors were made in arriving at the net income amounts reported The following errors were discovered: a. Sale of merchandise on account amounting to P100,000 was recorded twice at the end of 2021, b. Goods costing P24,000 were in transit from a supplier on December 31, 2019. The goods were appropriately included in the ending inventory but the corresponding purchase was not recorded until it is received the following year. C. Accrued salaries were consistently omitted from the records. The amounts omitted were: 2019-P35,000 d. The merchandise inventory at December 31, 2020 was overstated by P40,000 as the result of errors made in the footings and extensions on the inventory sheets. e. Unexpired insurance of P22,000 applicable to 2020 was expensed in 2019. Interest receivable of P12,500 was not recorded on December S. 2021. 2020 - P47,000 2021- P29,000 On January 2, 2019, a piece of equipment costing P250.000 Wai for P120,000. At the date of sale, the eguin depreciation of P100 000 TI
Interest receivable of P12,500 was not recorded on December 31, any for Case 3-Effects of The Statement of Comprehensive Income of Ma the years ended December 2019, 2020, and 2021 indicate the followin income: 2021- P367,000 2020-P402,000 2019-P320,000 An examination of the accounting records for these years indicates th several errors were made in arriving at the net income amounts reported The following errors were discovered: a. Sale of merchandise on account amounting to P100,000 was recorded twice at the end of 2021, b. Goods costing P24,000 were in transit from a supplier on December 31, 2019. The goods were appropriately included in the ending inventory but the corresponding purchase was not recorded until it is received the following year. C. Accrued salaries were consistently omitted from the records. The amounts omitted were: 2019-P35,000 d. The merchandise inventory at December 31, 2020 was overstated by P40,000 as the result of errors made in the footings and extensions on the inventory sheets. e. Unexpired insurance of P22,000 applicable to 2020 was expensed in 2019. Interest receivable of P12,500 was not recorded on December S. 2021. 2020 - P47,000 2021- P29,000 On January 2, 2019, a piece of equipment costing P250.000 Wai for P120,000. At the date of sale, the eguin depreciation of P100 000 TI
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...
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