While examining the December 31, 2010 financial statements of Dawn Company, the following errors are discovered: Inventory at January 1 had been overstated by P50,000.; Inventory at December 31 was understated by P100,000.; During 2010, Dawn received a P200,000 cash advance from customer for merchandise to be manufactured and shipped during 2011. The collection was credited to sales revenue.; The net income reported on the 2010 income statement before reflecting any adjustments for the above items is P5,000,000. What is the corrected net income for the year ended December 31, 2010? Choices; 4,950,000 5,150,000 5,100,000 4,850,000
While examining the December 31, 2010 financial statements of Dawn Company, the following errors are discovered: Inventory at January 1 had been overstated by P50,000.; Inventory at December 31 was understated by P100,000.; During 2010, Dawn received a P200,000 cash advance from customer for merchandise to be manufactured and shipped during 2011. The collection was credited to sales revenue.; The net income reported on the 2010 income statement before reflecting any adjustments for the above items is P5,000,000. What is the corrected net income for the year ended December 31, 2010? Choices; 4,950,000 5,150,000 5,100,000 4,850,000
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 71BPSB
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While examining the December 31, 2010 financial statements of Dawn Company, the following errors are discovered: Inventory at January 1 had been overstated by P50,000.; Inventory at December 31 was understated by P100,000.; During 2010, Dawn received a P200,000 cash advance from customer for merchandise to be manufactured and shipped during 2011. The collection was credited to sales revenue.; The net income reported on the 2010 income statement before reflecting any adjustments for the above items is P5,000,000. What is the corrected net income for the year ended December 31, 2010?
Choices;
4,950,000
5,150,000
5,100,000
4,850,000
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