While examining the accounts of Grandma Company on December 31, 2015, the following errors were uncovered: Dividends of P100,000 had been declared on December 15, 2015 but was not recorded in the books. Improvements in buildings and equipment for P480,000 had been debited to expense at the end of April in 2014. Improvements arestimated to have an estimated life of 8 years. The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2014 and 2015, respectively. supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2014 and 2015, respectively. What is the net effect of the error in the 2015 net income? ● ● ● Select the correct response: OP59,500 over OP70,000 over P74,500 over P85,000 over

While examining the accounts of Grandma Company on December 31, 2015, the following errors were uncovered: Dividends of P100,000 had been declared on December 15, 2015 but was not recorded in the books. Improvements in buildings and equipment for P480,000 had been debited to expense at the end of April in 2014. Improvements arestimated to have an estimated life of 8 years. The company failed to record sales commissions payable amounting to P10,500 and P19,000 at the end of 2014 and 2015, respectively. supplies on hand amounting to P6,000 and P15,000 were not recognized at the end of 2014 and 2015, respectively. What is the net effect of the error in the 2015 net income? ● ● ● Select the correct response: OP59,500 over OP70,000 over P74,500 over P85,000 over

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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