The errors below were noted after the books of CalMart Corporation were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column. 2020 Liability Retained before closing 2021 Liability Eamings Retained Earnings af dosing Earnings Retained Eamings after Net Income Retained before closing Net Income Asset Asset closing Paid one yearinsurance premium of P2,000 effective April 1,2020. The entire amount was debited to expense account and no adjustment was made at the end of 2020. On December 31,2020, the Company acquired a parcel of land and a building at a total cost of P5,000,000. The entire amount paid was debited to land account. A reasonable estimate of the cost that should have been allocated to the building was P,2000,000. The building has an estimated life of 20 years. Failure to record supplies on hand at the end of 2020. The supplies on hand amounted to

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 11P: A review of Anderson Corporations books indicates that the errors and omissions pertaining to the...
icon
Related questions
Question
100%
The errors below were noted after the books of CalMart Corporation were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column.
2020
Liability
2021
Retained
before closing
Earnings Retained Eamings after Net Income
Liability
Retained
before closing
Eamings Retained Earnings after
closing
Net Income
Asset
Asset
closing
Paid one year insurance premium
of P2.000 effective April 1,2020.
The entire amount was debited to
expense account and no
adjustment was made at the end
of 2020
On December 31,2020, the
Company acquired a parcel of
land and a building at a total cost
of P5,000,000. The entire amount
paid was debited to land account.
A reasonable estimate of the cost
that should have been allocated
to the building was P,2000,000.
The building has an estimated life
of 20 years.
Failure to record supplies on
hand at the end of 2020. The
supplies on hand amounted to
P6,000.
Transcribed Image Text:The errors below were noted after the books of CalMart Corporation were audited at the close of 2021 Indicate the effects of each of the following errors with an O for Overstatement, U for understatement and N for no effect in the appropriate column. 2020 Liability 2021 Retained before closing Earnings Retained Eamings after Net Income Liability Retained before closing Eamings Retained Earnings after closing Net Income Asset Asset closing Paid one year insurance premium of P2.000 effective April 1,2020. The entire amount was debited to expense account and no adjustment was made at the end of 2020 On December 31,2020, the Company acquired a parcel of land and a building at a total cost of P5,000,000. The entire amount paid was debited to land account. A reasonable estimate of the cost that should have been allocated to the building was P,2000,000. The building has an estimated life of 20 years. Failure to record supplies on hand at the end of 2020. The supplies on hand amounted to P6,000.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Audit procedures for items of Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Contemporary Auditing
Contemporary Auditing
Accounting
ISBN:
9781337650380
Author:
KNAPP
Publisher:
Cengage