ії. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and2010 contained errors as follows:201141Ending InventoryDepreciation Expense2010$3,000 overstated S8,000 overstated$2,000 understated| $6,000 overstatedAssume that no correcting entries were made at December 31, 2010. Ignoring income taxes, byhow much will retained earnings at December 31, 2011 be overstated or understated?a. $1,000 understatedb. $5,000 overstatedc. S5,000 understatedd. $9,000 understated

First step is to compute the effect of errors of 2010 on the retained earnings in 2010.The errors…

Answered: ії. Casillas, Inc. is a calendar-year…

Principles of Accounting Volume 1

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Chapter10: Inventory

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Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...

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12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2010 Ending Inventory$3,000 overstated$8,000 overstated $2,000 understated$6,000 overstated 2011 Depreciation Expense Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012. Ignoring income taxes, by how much will working capital at December 31, 2012 be overstated or understated? a. $0 b. $2,000 overstated c. $2,000 understated d. $5,000 understated
1. During 2014, Gambler Company discovered that the ending inventories on its financialstatements were incorrect by the following amounts:2012 P120,000 understated2013 150,000 overstatedGambler uses the periodic system to ascertain year-end quantities that are converted to pesoamounts using FIFO cost method.Prior to any adjustments for these errors and ignoring income taxes, how much would be theaccumulated profits and losses of Gambler at January 1, 2014? 2. Market Corporation failed to recognize accruals and prepayments since the inception of itsbusiness three years ago. The accruals and prepayments at the end of 2014 are given below:Prepaid insurance P60,000Accrued wages 75,000Rent revenue collected in advance 96,000Interest receivable 81,000What is the net effect of the above errors in the 2014 net income?
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The amount of net deferred tax asset/(liability) at January 1, 2008 is? The amount of net deferred tax asset/(liability) at December 31, 2008 is? Income tax expense – current for 2008 is?
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In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $67,000 in both 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 25%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be ho change in taxes payable. Additional information: 20X6 20X5 Beginning retained earnings $454,000 Earnings (includes error in 20X5) Dividends declared 85,400 62,200 $430,400 95,900 72,300 Required: 1. Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the entry for 20X6 to correct the error.
In 20X6, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $68,000 in both 20X4 and 20X5 for financial reporting purposes. Net income in 20X6 is correct. The tax rate is 35%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be no change in taxes payable. Additional information: Z0X6 Beginning retained earnings $456,000 zexs $432,500 Earnings (includes error in 20x5) Dividends declared 85,800 62,500 96,400 72,900 Required: 1. Record the entry in 20X6 to correct the error. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) Answer is not complete. General Journal Debit Credit 136,000 23,800x 112,200x No 1 Date 20X6 Deferred income tax liability Retained earnings, error correction 2. Prepare the comparative retained earnings section of the statement of changes…
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Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 2017 2018 2019 2020 $ 370) $170 $0 $0 $ (740) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability, Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLs be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss).
The following incorrect income statement was prepared by the accountant of the Axel Corporation: AXEL CORPORATI0N Income statement For the Year Ended December 31, 2021 Revenues and gains: $790,000 Sales revenue 52,000 Interest revenue 99,000 Total revenues and gains 941,000 Expenses and losses: Cost of goods sold $425,000 Selling…
(Single-Step Income Statement) The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2017. Fortunately, the controller had kept certain statistical data related to the income statement as follows. 1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year.2. Sales discounts amount to $17,000.3. 20,000 shares of common stock were outstanding for the entire year.4. Interest expense was $20,000.5. The income tax rate is 30%.6. Cost of goods sold amounts to $500,000.7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales.8. Four-fifths of the operating expenses relate to sales activities. InstructionsFrom the foregoing information prepare an income statement for the year 2017 in single-step form
Your examination of the financial statements of Chan Corporation revealed the following errors were made in the preparation of the 2017 financial statements: a. The depreciation expense in 2017 was recorded as P100,000, instead of P10,000b. Sales made in December 2017 for P150,000 were recorded in January 2018c. Rent paid on April 30, 2017 covering a one-year period was recognized as expense in 2017. Unexpired portion of P40,000 was not recordedat year-endd. Advances from customers amounting to P25,000 were recognized as sales in 2017. The goods were shipped in 2018.e. Salaries totaling to P50,000 was not recorded at year-end. The expense was recorded upon payment in 2018.f. Collections of accounts receivable in 2017 amounting to P20,000 were recorded in 2018.g. The unadjusted net income for 2017 is P650,000 Required: What is the net effect of the errors in the working capital at the end of 2017 and 2018? (TABULATE YOUR ANSWERS AND SHOW THE VALUES)

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