Accounting > EXAM > ACCOUNTANT 1 Holy Angel University NATALIE Company | An insurance premium of P600,000 was prepaid in (All)

ACCOUNTANT 1 Holy Angel University NATALIE Company | An insurance premium of P600,000 was prepaid in 2018 covering the years 2018, 2019, and 2020. The entire amount was charged to expense in 2018. No corrections have been made for any of the errors. Ignore income tax.

Document Content and Description Below

NATALIE Company reported that the financial statements contained the following error: December 31, 2018 December 31, 2019 Ending Inventory P950,000 overstated P800,000 understated Depreciation P250,000 understated An insurance premium of P600,000 was prepaid in 2018 covering the years 2018, 2019, and 2020. The entire amount was charged to expense in 2018. No corrections have been made for any of the errors. Ignore income tax. QUESTION: What is the total effect of the errors on retained earnings on December 31, 2019. Flag question: Question 32 Question 323 pts RHEA Company reported sales revenue of P4,600,000 in the income statement for the current year. Additional information for the current year is as follows: January 1 December 31 Accounts receivable 1,000,000 1,300,000 Allowance for doubtful accounts 60,000 110,000 Advances from customers 200,000 300,000 QUESTION: The entity wrote off uncollectible accounts totalling P50,000 during the current year. Under cash basis, what amount should be reported as sales revenue for the current year? Flag question: Question 33 Question 333 pts While preparing the financial statements for 2019, RIZA Company discovered computational errors in 2017 and 2018 depreciation expense. These errors resulted in overstatement of each year’s income by P25,000, net of income tax. The net income for 2019 is correctly reported at P500,000. The following amounts were reported in the previously issued financial statements:2018 2017 Retained earnings, January 1 700,000 500,000 Net Income 150,000 200,00 0 Retained Earnings, December 31 850,000 700,000 QUESTION: What is the balance of retained earnings on December 31, 2019 Flag question: Question 34 Question 343 pts JANE Company, reported cash basis sales revenue of P2,300,000 for the year ended December 31, 2019. The entity provided the following information: January 1 December 31 Accounts receivable 500,000 650,000 Notes receivable 150,000 200,000 During the current year, uncollectible accounts of P10,000 were written off and note receivable of P100,000 was discounted for net proceeds of P90,000 and credited directly to notes receivable. QUESTION: Under Accrual basis, what amount should be reported as sales?

[Show More]

Last updated: 1 month ago

Preview 4 out of 14 pages

Get Access

Instant download after payment

Card Payments

₿ Crypto Accepted

Instant download