The unadjusted income statement of Astra Zenica Co. shows a net income of P125,000 for the year ended December 31, 2021. The following data were discovered in the course of the examination of the company's records: * December 31, 2020 Inventory is overstated by P22,500 * December 31, 2021 Inventory is understated by P37,500 * A P10,000 customer's deposit received in December 2021, was credited to sales in 2021. The goods were actually shipped in January 2022. What is the adjusted net income of the firm for the year ended December 31, 2021?

The unadjusted income statement of Astra Zenica Co. shows a net income of P125,000 for the year ended December 31, 2021. The following data were discovered in the course of the examination of the company's records: * December 31, 2020 Inventory is overstated by P22,500 * December 31, 2021 Inventory is understated by P37,500 * A P10,000 customer's deposit received in December 2021, was credited to sales in 2021. The goods were actually shipped in January 2022. What is the adjusted net income of the firm for the year ended December 31, 2021?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...

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