Determine the audited balance of Net Income under the accrual basis Your answerDetermine the audited balance of Net income under the accrual basis:An analysis of incomplete records of Angel Corporation produced the following information applicablein 2019:P4,200,0001,400,000400,000200,000ACCOUNT INCREASES:CashAccounts receivableAccounts payablePrepaid insuranceACCOUNT DECREASES:InventoryEquipmentNotes receivableAccrued salaries payable1,000,000100,000600,000300,000Summary of cash transactions were as follows:RECEIPTS:Cash salesCollections of accounts receivableCollections of notes receivableInterest on notes receivablePurchase returns and allowancesP3,000,00030,000,0002,400,000200,000500,000DISBURSEMENTS:Cash purchasesPayments of accounts payableSales returns and allowances1,000,00016,500,000400,000700,00010,000,000800,0001,500,0001,000,000InsuranceSalariesEquipmentOther expensesDividendsAdditional information:a. Total purchase returns and allowances amounted to P800,000.b. Total sales returns and allowances amounted to P1,200,000.Your answer

Net Income = Net Sales- Cost of Goods sold+other Income-Operating expenses- Depreciation-other…

Answered: Your answer Determine the audited…

Business

Accounting

Your answer Determine the audited balance of Net income under the accrual basis:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11EB: Outpost Designs uses the balance sheet aging method to account for uncollectible debt on...

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Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Noren Company considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
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It is February 16, 2020, and you are auditing Davenport Corporation's financial statements for 2019 (which will be issued in March 2020). You read in the newspaper that Travis Corporation, a major customer of Davenport, is in financial difficulty. Included in Davenports accounts receivable is 50,000 (a material amount) owed to it by Travis. You approach Jim Davenport, president, with this information and suggest that a reduction of accounts receivable and recognition of a loss for 2019 might be appropriate. Jim replies, Why should we make an adjustment? Ted Travis, the president of Travis Corporation, is a friend of mine; he will find a way to pay us, one way or another. Furthermore, this occurred in 2020, so lets wait and see what happens; we can always make an adjustment later this year. Our 2019 income and year-end working capital are not that high; our creditors and shareholders wouldnt stand for lower amounts than they already are. Required: From financial reporting and ethical perspectives, prepare a response to Jim Davenport regarding this issue.
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Outpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
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During your audit of the books of Colorado Corporation for the year ended December 31, 2021, you discovered that certain accrued income and expenses were overlooked at the end of 2019, 2020 and 2021. Not recognized at year end 2019 2020 2021 Accrued interest income 2,000 3,000 Accrued salaries expense 12,000 6,000 Accrued rent payable 20,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021
During your audit of the books of Alarcon Corporation for the year ended December 31, 2021, you discovered that certain accrued expenses were overlooked at the end of 2014, 2015 and 2016. Not recognized at year end 2019 2020 2021 Accrued salaries expenses 15,000 10,000 12,000 Accrued rent expense 25,000 Accrued interest payable 2,000 Net income for the year 500,000 550,000 600,000 Retained earnings at year end 8,300,000 8,800,000 9,200,000 REQUIRED: Based on the foregoing, compute the corrected balances of following: Net income for 2019 Net income for 2020 Net income for 2021 Retained Earnings as of December 31, 2019 Retained Earnings as of December 31, 2020 Retained Earnings as of December 31, 2021