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
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...
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