Question 21 of 34Genius Company reported an Accumulated Profits and Losses balance of P300,000 at December 31, 2014. In June 2015, Genius discovered that merchandisecosting PI00,000 had not been included in inventory in its 2014 financial statements. Assume Genius has 32% tax rate.What amount should Genius report as adjusted beginning Accumulated Profits and Losses on January 1, 2015?Select the correct response:P232,000P300,000P368,000P400,000< PreviousContinue >

1. Accumulated profit as on December 31, 2014 is already after tax. 2.…

Answered: What amount should Genius report as…

Business

Accounting

What amount should Genius report as adjusted beginning Accumulated Profits and Losses on January 1, 2015?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 28CE: Inventory Errors McLelland Inc. reported net income of $175,000 for 2019 and $210,000 for 2020....

See similar textbooks

Related questions

Q: State the section(s) of the statement of cash flows prepared by the indirect method (operating…

A: In the context of the given question, we are required to show the treatment of different…

Q: Mr. Tristan Siy III established Siy Bookkeeping Services and had the following transactions for the…

A: Cash flow statement: It is a statement, which shows the flows of cash and cash equivalents for a…

Q: Case Study 2: Data Representation Problem ABC Education Services, a private firm designed and…

A: Ethics- Ethics is referred to as a moral code of conduct that is upheld by an individual or a group…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond…

A: When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

Q: Coverage ratios of a company in simultaneous years (say 2010 and 2011) are as follows, explain on…

A: A coverage ratio of a company tells us about a company's ability to pay off its liabilities over a…

Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…

A: Depreciation is the reduction in value of asset over the period of time. Under straight line method,…

Q: Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product…

A: Revenue is the amount of money earned by an entity. It is the money earned by providing the services…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: Cumberland Co. sells $919 of inventory to Hancock Co. for cash. Cumberland paid $673 for the…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: On March 2, Monty Corp. sold $932,000 of merchandise on account to Marigold Company, terms 4/10,…

A: Under perpetual inventory method of inventory accounting the inventory is updated simultaneously as…

Q: Which of the following asset is not under PAS 41 Select the correct response: Harvested cotton…

A: In the context of the given questions, we are required to find the right options from the available…

Q: Instructions Smiley Corporation wholesales repair products to equipment manufacturers. On April Year…

A: Bonds are a form of debt or liability for the business. on which regular interest payments needs to…

Q: i. Accounting Profit for the carpenter ii. Economic profit for the carpenter

Q: An entity is planning to sell the business to new interests. The cumulative net earnings for the…

A: At the time of purchase or acquisition of any business or empire, sometimes amount paid for…

Q: artners A, B and C decided to liquidate their partnership. A summary of the partnership's state…

A: Partnership- A partnership is a type of business where two or more persons jointly own and are…

Q: What are the three broad classes of cash flows. Why this classification is needed?

A: Cash Flow Statement - The cash Flow Statement is the Statement that represents the inflow and…

Q: Oriole Company completed the following transactions in October: Oriole uses a perpetual inventory…

A: Introduction: The amount of days it takes to recover accounts receivable is referred to as the cash…

Q: On April 5, purchased merchandise on account from Sheffield Company for $26,400, terms 4/10, net/30,…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

Q: 27.The individual customer accounts of ABC Company at June 30, 20X1 revealed the following data:…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: ABC Traders had the following data for Product Pink on June 20X1: Beginning balance 100 boxes at…

A: First-In, First-Out (FIFO): The accounting procedure known as "First In, First Out" (FIFO) refers to…

Q: ABC Co received from a customer a 3-year non-interest bearing note of P120,000 on Jan 1, 20X1.…

A: When sales are made in exchnage of non-interest bearing note, the sales are recorded at present…

Q: Which of the following characteristics is typical of group insurance? A.Each employee receives an…

A: Following are the characteristics of group insurance 1. It is a group contract that covers all the…

Q: On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value…

A: Investment in bonds: Investment in bonds is the scenario where the company acquires bonds either at…

Q: A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he…

A: Accounting Profit = Total Revenue – Explicit Costs Explicit cost are the actual cost of the…

Q: Common stock-$10 par value, 100,000 shares authorized, 60,000 shares issued and outstanding Paid-in…

A: Retained earning are retained by the entity after its expenses which includes dividends paid.…

Q: Amalgamated General Corporation is a consulting firm that also offers financial services through its…

A: Journal entry: It is the first step of recording transactions of a company. Before this, no other…

Q: Fanning Corporation estimated its overhead costs would be $22,100 per month except for January when…

A: A budget is an estimation or a financial plan for a defined period, usually one year. It may also…

Q: While examining the accounts of Grandma Company on December 31, 2015, the following errors were…

A: The question requires us to calculate the net effect of the error in the 2015 Net Income. The…

Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…

A: Preferred stock runs more like a bond than regular stock. Preferred stock dividend yields are…

Q: 1. A company is evaluating two projects, A and B. The company's cost of capital has been determined…

A: Answer:- Net present value of project A is 2,530. Explanation:- Computation of net present value of…

Q: Cola company reported an Retained earnings balance of P400,000 at December 31, 2014. In August 2015,…

A: Retained earnings balance is accumulated profits and losses over the period. It is increased by…

Q: Ly Test 1- Lyryx Learning Inc - Google Chrome…

A: An income statement is a financial statement that shows the financial performance of the business…

Q: Inc. Tive-year yielding effective interest rate of 12%. Semi annual interest is payable on June 30…

A: When the market rate of interest ( here 12%) is more than the stated rate of interest ( here 11%)…

Q: Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income…

A: Income Tax The most accurate definition of income tax is the amount of tax that the government…

Q: Financial accounting is shaped to a significant extent, by the environment, and in particular all of…

A: Hi student Since there are multiple questions, we will answer only first question. Financial…

Q: The partnership of Rachel, Joy, and Cecilia has the following account balances: Cash -36,000 Noncash…

A: Partnership refers to the contractual agreement where two or more parties or individual who came…

Q: The following data were gathered to use in reconciling the bank account of Eves Company: Balance per…

A: Theory part: Bank reconciliation statement: Every company maintains books of accounts . Due to Time…

Q: Prepare the net sales portion only of this company's multiple-step income statement.

A: Sales revenue: sales revenue is the revenue earned by the company through sales Gross sales: Gross…

Q: Inventory Costing Method.

A: Methods of issuing the Material from store: THE Material purchased at first entered into the store…

Q: At a level of physical activity of 15,000 units, the total cost would be as follows using the cost…

A: The total costs are calculated as sum of fixed and variable costs of the production. Private higher…

Q: A bank statement received by Allied Ltd for the month of February 2022 showed a credit balance of…

A: Introduction: BRS: BRS stands for Bank Reconciliation statement. To reconcile the differences…

Q: (Franking Account) Rudimentary Pty Ltd, a corporate tax entity, has the following transactions for…

A: Franking Account: It is a rolling balance account, in other words "The Franking Account Balance is…

Q: Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% coupon rate (paid semiannually), and a…

A: Given details: Face value of the bonds = $1,000 Coupon rate (paid semiannually) = 7.25% Coupon…

Q: The following information is available from the current period financial statements: Net income…

A: Introduction: Operating activities are a company's daily activities that involve making and selling…

Q: Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog-…

A: Introduction: Operating expenditures are the expenses incurred by the company in order to operate or…

Q: What amount is reported on the Form 1040 line: qualified dividends? Note: enter whole numbers only.…

A: According to the Internal Revenue Service (IRS), qualifying dividends must satisfy the following…

Q: Question 3 (Retain or Replace Equipment) Chudzick Company has a factory machine with a book value of…

A: Retain and replacement decision will be taken on the basis of incremental profit, if after replacing…

Q: Chapter 30 - Depletion Question 1-2. At the beginning of the year 2021, Wise Corp. purchased a…

A: In accordance with PFRS, the present value of dismantling cost and any costs that are incurred which…

Q: Mullis Corporation manufactures DVDs that sell for $5.20. Fixed costs are $35,000 and variable costs…

A: Breakeven point in Units = Fixed cost / Contribution margin per unit

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Important Notes

VIEW

Solution:

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

LIFO Liquidation Profit Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had the following purchases and sales of its single inventory item: In December 2020, the controller realized that because of an unexpected increase in demand, the company had sold 22,000 units but had purchased only 19,000 units during the year. In 2020, each unit had been sold for 19, and each unit purchased had cost 10. The income tax rate is 21%. Required: 1. Next Level If Hammond makes no additional purchases in 2020, how much LIFO liquidation profit will it report? 2. Prepare the appropriate annual report disclosures for 2020. 3. Next Level if Hammond purchases an additional 7,000 units in December 2020, how much income tax will the company save? 4. Next Level If Hammond purchases the additional 7,000 units, how much income tax has the company saved over the 4-year period by using LIFO instead of the FIFO cost flow assumption?
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Effects of an Inventory Error The income statements for Graul Corporation for the 3 years ending in 2019 appear below. During 2019, Graul discovered that the 2017 ending inventory had been misstated due to the following two transactions being recorded incorrectly. a. A purchase return of inventory costing $42,000 was recorded twice. b. A credit purchase of inventory' made on December 20 for $28,500 was not recorded. The goods were shipped F.O.B. shipping point and were shipped on December 22, 2017. Required: 1. Was ending inventory for 2017 overstated or understated? By how much? 2. Prepare correct income statements for all 3 years. 3. CONCEPTUAL CONNECTION Did the error in 2017 affect cumulative net income for the 3-year period? Explain your response. 4. CONCEPTUAL CONNECTION Why was the 2019 net income unaffected?
1. Genius Company reported an Accumulated Profits and Losses balance of P300,000 at December31, 2014. In June 2015, Genius discovered that merchandise costing P100,000 had not beenincluded in inventory in its 2014 financial statements. Assume Genius has 32% tax rate.What amount should Genius report as adjusted beginning Accumulated Profits andLosses on January 1, 2015? 2. Cola Company reported an Retained earnings balance of P400,000 at December 31, 2014. InAugust 2015, Cola Company determined that insurance premiums of P75,000 for the three-yearperiod beginning January 1, 2014, had been paid and fully expensed in 2014.Assume Cola has a 32% income tax rate. What amount should Cola report as adjustedbeginning Retained earnings in 2015?
26. Jethroe Co. reported a retained earnings balance of $200,000 at December 1, year 4. In June year 5, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its year 4 financial statements. Jethroe has a 21% tax rate. What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, year 5?
Ma3. Hall Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using the LIFO inventory method. During the year, the company sold more items than purchased, causing the ending inventory balance to drop to 65,000 units. Assuming a tax rate of 25%, and a current replacement cost of inventory of $28 per unit, what is the LIFO liquidation effect on after-tax income? Select one: a. $341,250 b. $455,000 c. $633,750 d. $113,750
1. While examining the December 31, 2014 financial statements of Dawn Company, you discoverthe following:a) Inventory at January 1, 2014 had been overstated by P30,000.b) Inventory at December 31, 2014 was understated by P50,000.c) During 2014, Dawn received a P100,000 cash advance from a customer for merchandise tobe manufactured and shipped during 2014. The amount was credited to sales revenue.d) The net income reported on the 2014 profit or loss before reflecting any adjustments for theabove items is P3,000,000.What is the corrected net income for the year ended December 31, 2014?
6. On January 1, 2011, Folk Company changed from the average cost method to the FIFO method to account for its inventory. Ending inventory for each method was given below. Folk Company accrues tax expense on December 31 of each year and pays the tax in April of the following year. The income tax rate is 30%. What is the net income to be reported in 2011 after the change to the FIFO inventory method? a. 1,610,000 b. 2,300,000 c. 1,750,000 d. 1,890,000
Problem 9 The financial statement of mythical Reliance Inc.show that in 2012, its beginning inventory balance was$31.82 billion and ending inventory balance was $30.25billion. The company's cost of goods sold was reported as $290.70 billion(all in U.S. dollars). Calculate the company's inventory turnover ratio for 2012.