Reference no: EM132817978
DEF Company showed pre-tax income of P2,500,000 for the year ended December 31, 2022. On your year-end verification of the transactions of the Company, you discovered the following errors:
a. P1,000,000 worth of merchandise was purchased in 2022 and included in the ending inventory. However, the purchase was recorded only in 2023.
b. A merchandise shipment valued at P1,500,000 was properly recorded as purchases at year- end. The merchandise was inadvertently omitted from the physical count, since it has not arrived by December 31, 2022.
c. Value added tax for the fourth quarter of 2022, amounting to P500,000, was included in the Sales account.
d. Rental of P300,000 on an equipment, applicable for six months, was received on November 1, 2022. The entire amount was reported as revenue upon receipt.
e. Rent paid on building covering the period from July 1, 2022 to July 1, 2023, amounting to P1,200,000, was paid and recorded as expense on July 1, 2022. The company did not make any adjustment at the end of the year
Problem 1. The correct pre-tax profit for 2022 should
Problem 2. What is the net effect of the foregoing errors on the total assets at December 31, 2022? (use negative sign if overstated)
Problem 3. What is the total understatement of the total liabilities at December 31, 2022?
|
What do you think bill should do to construct learning plan
: What do you think Bill should do to construct a learning plan? If he were to write one out, formally, what might it look like? How would you express.
|
|
Please describe examples of business financing
: Please describe examples of business financing that would support short-term assets. What kind of financing would be appropriate for supporting long-term assets
|
|
Determine the number of cash cycles or turnover in one year
: The following information is provided for an annual period: Average Inventory Balance: 245,000 Sales for the year: 1,600,000 Average Receivable Balance: 175,000
|
|
Can social media constitute a risk to our national security
: The Module 2 Commentary notes the short and long term risks of terrorist attacks resulting from globalization - defined as the economic and social.
|
|
Find what is the net effect of the foregoing errors
: P1,000,000 worth of merchandise was purchased in 2022. What is the net effect of the foregoing errors on the total assets at December 31, 2022?
|
|
Determine the implicit interest rate
: Determine the implicit interest rate (opportunity cost) of each discounted term and determine which discounts you will take based upon the terms
|
|
Determine the number of cash cycles
: Determine the number of cash cycles or turnover in one year.
|
|
How to differentiate and accommodate students needs
: As a teacher, it is crucial to know the milestones for language and literacy based on the age and developmental level of students in order to know how to.
|
|
What would be the beta of the bank
: Current dividend per share distributed by the bank = $4. If current stock price of the bank is $80, what would be the Beta of the bank.
|