Alodia Company's December 31, year-end financial statement contained the following errors: 12/31/2022 120,000 over 12/31/2023 170,000 under 85,000 under 32,000 Beginning Inventory Depreciation expense Unrecognized interest receivable 20,000 An insurance premium of P360,000 was paid in August 1, 2022 covering three years starting 2022. The same was charged to expense in full in 2022. In addition, on December 31, 2023, a fully depreciated machinery was sold for P120,000 cash, but it was recorded as income upon sale for the amount of proceed. There were no other errors during 2022, 2023 and 2024 and no corrections have been made for any of these errors. Ignore income tax considerations. Alodia Company reported income of P2,150,000, P2,450,000, and P2,660,000 in 2022, 2023, and 2024 respectively. Determine the following as a result of your audit: 3. How much is the adjusted net income in 2022? 4. How much is the adjusted net income in 2023? 5 How much is the adjusted net income in 20212

Alodia Company's December 31, year-end financial statement contained the following errors: 12/31/2022 120,000 over 12/31/2023 170,000 under 85,000 under 32,000 Beginning Inventory Depreciation expense Unrecognized interest receivable 20,000 An insurance premium of P360,000 was paid in August 1, 2022 covering three years starting 2022. The same was charged to expense in full in 2022. In addition, on December 31, 2023, a fully depreciated machinery was sold for P120,000 cash, but it was recorded as income upon sale for the amount of proceed. There were no other errors during 2022, 2023 and 2024 and no corrections have been made for any of these errors. Ignore income tax considerations. Alodia Company reported income of P2,150,000, P2,450,000, and P2,660,000 in 2022, 2023, and 2024 respectively. Determine the following as a result of your audit: 3. How much is the adjusted net income in 2022? 4. How much is the adjusted net income in 2023? 5 How much is the adjusted net income in 20212

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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