2020 accumulated inventory impairment amount 2000 2021 the company considered the required accumulated impairment amount to be 1200 and thus reversed the difference in results. In the auditor's view, the required amount of accumulated impairment in 2021 is 2500. If in 2021 the total assets are 35000, how much is the assets at 31.122021

2020 accumulated inventory impairment amount 2000 2021 the company considered the required accumulated impairment amount to be 1200 and thus reversed the difference in results. In the auditor's view, the required amount of accumulated impairment in 2021 is 2500. If in 2021 the total assets are 35000, how much is the assets at 31.122021

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 14EA: If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance...

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In fiscal year 2020, the company had formed an inventory impairment of 2000. In fiscal year 2021, the company considered that the required amount of accumulated impairment amounted to 1200 and thus reversed the difference in results. However, according to the documented opinion of the Chartered Accountant, the required amount of accumulated impairment in the year 2021 amounted to the amount of 2500. Based on the above if the amount of 2021 net worth is 15000, the actual net worth amount is 31/12/2021?
In fiscal year 2020, the company had accumulated inventory impairment of 2000. In fiscal year 2021, the company considered that the required amount of accumulated impairment amounted to 1300 and thus reversed the difference in results. However, according to the Auditor, the required amount of accumulated impairment in the year 2021 amounted to 2500. If the amount of net profit of the income statement in 2021 is 20000, how much is the actual profit of the business?
(S) porins) An audit of Antwren revealed four errors that were made but never corrected. In 2021, ending inventory was overstated by $201, 000 and depreciation was overstated by $44,000. In 2022, nding inventory was understated by $111, 000 and wages expens as understated by $86, 000. What effect did these errors have 0 htwren's 2022 net income? (RE&CF 6) understated by $226, 000 overstated by $132, 000 pverstated by $157,000 inderstated by $25,000
Aljohn Company's year-end financial statements contained the following errors: 12.31.2021 12.31.2022 Ending inventory P95,000 understated P800,000 overstated Depreciation P250,000 understated An insurance premium of P600,000 was prepaid in 2021 covering the years 2021, 2022, and 2023. The entire amount was charged to expense in 2021. In addition, on December 31, 2022, fully depreciated machinery was sold for P150,000 cash, but the entry was not recorded until 2022. No corrections have been made for any of the errors. Ignore income tax. What was the total effect of the errors on retained earnings on December 31, 2022?
Bramble Inc. reported total assets of $2395000 and net income of $321000 for the current year. Bramble determined that inventory was overstated by $25000 at the beginning of the year (this was not corrected). What is the corrected amount for total assets and net income for the year? O $2420000 and $346000 O $2395000 and $346000 O $2370000 and $296000 O $2395000 and $321000
What is the effect of a $40000 overstatement of last year's inventory on current years ending retained earning balance? Overstated by $40000. Need more information to determine. Understated by $40000. No effect.
Bonghill Company’s December 31 year-end financial statements had the following error:                                                 December 31, 2019                         December 31, 2020 Ending Inventory 13,500 understated 19,800 overstated Depreciation expense 3,600 understated                            - Unearned rental 5,000 understated                            - Prepaid insurance - 8,000 understated There were no other errors during the years 2019 or 2020 and no corrections have been made for any of the errors. (Ignore income tax considerations) What is the net effect of the errors in Bonghill’s December 31, 2020 accumulated profits balance?
Bonghill Company’s December 31 year-end financial statements had the following error: December 31, 2019                         December 31, 2020 Ending Inventory             P13,500 understated P19,800 overstated Depreciation expense        3,600 understated                            - Unearned rental                   5,000 understated                            - Prepaid insurance                     - 8,000 understated There were no other errors during the years 2019 or 2020 and no corrections have been made for any of the errors. (Ignore income tax considerations) What is the net effect of the errors in Bonghill’s December 31, 2020 accumulated profits balance? A.Understated by P20,300 B.verstated by P11,800 C.Overstated by P20,300 D.Overstated by P15,400
Company started operations on January 1, 2019. Financial Statements for 2019 and 2020 contained the following errors:                                                                 December 31, 2019                December 31, 2020 Ending inventory                              P55,000 overstated                     P65,000 understated Depreciation expense                   35,000 overstated                                - Insurance expense                         25,000 understated               25,000 overstated          Prepaid insurance                            25,000 overstated                                - Additionally, a fully depreciated equipment was sold for P12,000 on December 31, 2020. The sale was not recorded until 2021. No corrections have been made for any of the errors. (Ignore income tax considerations) How much would be the total effect of the errors in company's 2020 net income? A.Overstated by P83,000 B.Understated by P157,000 C.Overstated by P48,000…
56. Harper Inc. incurred an inventory loss from market decline of P840,000 on June 30, 2019. What amount of the inventory loss should be recognized in the quarterly income statement for the three months ended June 30, 2019? a. 210,000 b. 280,000 c. 420,000 d. 840,000
Sheridan Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2020 December 31, 2021 Ending inventory $9,600 understated $7,600 overstated Depreciation expense $2,100 understated — An insurance premium of $62,100 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $16,300 cash, but the entry was not recorded until 2022. There were no other errors during 2020 or 2021, and no corrections have been made for any of the errors. (Ignore income tax considerations.)(a) Compute the total effect of the errors on 2021 net income. Total effect of errors on net income $Enter the total effect of errors on net income in dollars (b) Compute the total effect of the errors on the amount of Sheridan’s working capital…
Problem 8-25 (PHILCPA Adapted) After the issuance of the 2020 financial statements, Narra Company discovered a computational error of P150,000 in the calculation of the December 31, 2020 inventory. The error resulted in a P150,000 overstatement in the cost of goods sold for the year ended December 31, 2020. In October 2021, the entity paid the amount of P500,000 in settlement of litigation instituted against it during 2020. In the 2021 financial statements, what is the pretax adjustment to retained earnings on January 1, 2021? a. 150,000 credit b. 350,000 debit C. 500,000 debit d. 650,000 credit