Answer To: disburse d orDecember 31.(6) Savings account with Allied Bank, P900,000 as: tion fuiP480,000...
Rochak answered on Oct 14 2022
Answer 7:
a. Corrected comparative statements
2021
2020
Sales
9,10,000
7,20,000
Cost of Sales
6,15,000
4,35,000
Gross Profit
2,95,000
2,85,000
Other Operating Income
1,14,000
63,000
Total Income
4,09,000
3,48,000
Less: Selling and Administrative Expenses
2,80,000
1,70,000
Less: Depreciation
4,000
4,000
Profit from Operations before Interest and Income Tax
1,25,000
1,74,000
Interest Expense
80,000
20,000
Profit
45,000
1,54,000
b. Total Assets were understated in 2020 by 73,000
c. Total Assets were understated in 2021 by 63,400
d. Total Liabilities were understated in 2021 by 90,000
Answer 8:
a. Profit = Unused supplies - Repairs + Depreciation – Loss on trading securities - Interest
= 15,000 – 85,000 + 8,500 – 20,000 – 90,000
= -171,500
Profit was ‘overstated’ by 171,500 for 2020
b. Retained earnings were ‘overstated’ by 171,500 on December 31, 2020
c. Non-Current Assets = Unused supplies + Fair value of securities adjustment
= 24,000 + 50,000
= 74,000
Non-current assets was ‘understatement’ by 74,000 at December 31, 2021
d. Retained Earnings = Unused supplies + Depreciation + Gain on trading securities - Interest
= 24,000 + 8,500 + 50,000 – 72,000
= 10,500
Therefore, retained earnings should be credited by 10,500 for correcting purpose
e. Retained earnings should be 1,628,500
Answer 9:
a. Compute
1. Correct profit/loss
2020
2021
2022
Reported Profit
...