FIERY Company's December 31 year-end financial statements had the following errors: December 31, 2020 13,500 understated December 31, 2021 19,800 overstated Ending inventory Depreciation expense Unearned rental 3,600 understated 5,000 Understated Prepaid advertising 8,000 understated There were no other errors during the years 2020 and 2021 and no corrections have been made for any of the errors.
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken…
Q: Monitor Company has 120,000 ordinary shares issued and outstanding at January 1, 2020. On January 2…
A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…
Q: How is the account Unearned Fees classified and what kind of balance should it have? Group of answer…
A: A current liability is an obligation for the company that has to be paid off within a year. It would…
Q: The balance sheet data of Randolph Company for two recent years appears below: Assets: Year 2…
A: Financial analysis is widely used by companies to determine the profitability of the business and…
Q: For a printing company, the cost of paper is classified as a: A Period cost. B Direct…
A: The direct materials cost include the costs related to direct raw materials used for production.
Q: Determine the present equivalent value (PW) of the following cash flow when the annual interest rate…
A: Present Worth: The idea of present value asserts that a sum of money in the here and now is worth…
Q: the economic order quantity model the return on capital that is forgotten when it is invested in…
A: In EOQ model that is economic order quantity we consider the lot for which there will be overall…
Q: On January 1, 2016, Pedro Reyes invested PHP250,000 on a delivery van. The car is expected to last…
A: Depreciation way the quantity constant property written off because of ordinary put on and tear ,…
Q: At the beginning of current year, BLACKPINK Company had 480,000 P60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
Q: INCOME STATEMENTS Net sales COGS (excl. depr.) Depreciation Other operating expenses EBIT Interest…
A: Debt to Asset is a leverage Ratio that compares a company's total liabilities (both short-term…
Q: FINANCIAL STATEMENT ANALYSIS AND RATIO ANALYSIS The following are the balance sheet and income…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: CERISE Company uses accrual basis of accounting. Wages expense account had a balance of $255,000 at…
A: Wages expenses account is shows current year expenses. And fir calculation of expenses paid during…
Q: What is the net effect of the above errors in the 2021 net income? (If understated, put a negative…
A: The accrued expense are those expenses that are due but the payment of these expenses are not made…
Q: recession, then EBI
A: The repurchase of shares by using debt will decrease the shares outstanding and will increase the…
Q: a. Prepare an income statement for the year using the "functional" method with supporting notes. b.…
A: Introduction: Expenses in an income statement are categorized in keeping with their nature or…
Q: Charlton Company provided the following information concerning a defined benefit plan at the…
A: A diary entry is a type of accounting entry that is used to record a business transaction in the…
Q: gnoring income tax, the accounting change should preferably be reported by the company in its year…
A: As the question specified ignoring income taxes, the cumulative effect on retained earnings will be…
Q: please explain in steps, thanks
A: Cost of goods manufactured means the cost incurred on the manufacturing of finished goods. Formula…
Q: Prepare comparative balance sheets for 1997 and 1998, showing peso and percentage increases or…
A: Based on the figures of assets and liabilities of two year 1997 and 1998 Comparative balance sheet…
Q: Provide a hypothetical example of a process costing income statement in a manufacturing enterprise.…
A: Process costing is a cost accounting term that describes one method of obtaining and allocating…
Q: bl contr ntributes property with a $10,000 basis and a $60,000 book value to a partnership for 25%…
A: Partnership- A partnership is a business that involves two or more people who are equally…
Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…
A: Capitalized cost would be present value of all cost that are going to occur in future course of time…
Q: A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in…
A: For calculation of Theoretical losses in the first month of liquidation We need to calculate the…
Q: Question
A: A) For permanent differences such as penalties and interest that are not permitted as reductions for…
Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…
A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…
Q: Could you provide the formulas for each of the bold answers?
A: The answer is stated below:
Q: Prepare Strange Things cash budget for the months of October, November, and December showing all…
A: Cash budget is one of the important budget that is being prepared in business and it shows expected…
Q: Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales…
A: Formulas: Expected no. of units produced = Expected unit sales + Desired ending inventory -…
Q: Lace Company provided the following information during the current year: 500,000 1,000,000 Dividend…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: When will a person be bound by a contract entered into by another?
A: Introduction: A contract is a written or verbal agreement between 2 or more entities that generates…
Q: Under the Government Accounting Manual, what method is used in computing the ending inventory of…
A:
Q: SCARLET Corporation has an authorized capital of 10,000 shares of $100 par, 8% cumulative preference…
A: Formula: Book value per ordinary share = Total Equity available to Ordinary shareholders / No. of…
Q: ABC company manufactures two type of products product Y product X, and applies manufacturing…
A: Given that, Budgeted units of ; Product Y = 16,000 units Product X = 30,000 units Direct material…
Q: Maris Banking Corporation granted a loan to a borrower on January 1, 2020. The interest rate on the…
A: Introduction:- The following basic information as follows:- Loan receivables are balance that is…
Q: BLACK JACK Company purchased an automotive equipment on June 30, 2018 for $3,000,000. At the date of…
A: Depreciation formula as per straight line method = (Cost- residual value)/useful life
Q: Adjusting entries are sorted into two groups, accruals and deferrals. What is the classification…
A: As per the accrual accounting principle, each business transaction should be recorded in the period…
Q: 3. How much is the cumulative effect of this change that should be reported in the income statement…
A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…
Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which the first…
A: Uniform Annual Amount: A uniform series, often known as an annuity, is a collection of payments that…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Formula: Basic earnings per share = (Net income - Preferred dividend)/ Weighted average number of…
Q: The December 31, 2020, financial statements (before consolidation with Suffolk) follow. Dividend…
A: A cumulative translation adjustment is an entry in a translated balance sheet's accumulated other…
Q: How recording assets, liabilities, provisions and foreign exchange transactions in the books of…
A: Accounting is the process of documenting the financial transactions of a business. Accounting is the…
Q: Ignoring income tax, the accounting change should preferably be reported by the company in its year…
A: Accounting Policy are the principles and guidelines that must be followed consistently in the…
Q: Bond carries a part that is popular in the manufacture of automatic sprayers. Demand for this part…
A: Economic order quantity is a method that provides the number of units to be ordered for getting the…
Q: Jason invests $6000 in a savings account. The savings account pays compound interest at a rate of…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Accounting A local education institution's budget for 2020/21 for meals was £944,622. During 2020/21…
A: Budget plays important role in everyone's life and Zero base budgeting is the budgeting process…
Q: Elliptical Consulting Adjusted Trial Balance For the Year Ended June 30, 2019 Account Title…
A: Basic accounting equation is Total assets = Total liabilities + owners equity
Q: The t accounts for equipment and the related accumulated depreciation-equipment for Goldstone Co. at…
A: The cash flow statement shows the cash inflow and cash outflow due to the operating activities,…
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: Accounting Policy are the principles and guidelines that must be followed consistently in the…
Q: During the year ended 30 June 2021, a parent entity rents a warehouse from a subsidiary entity for…
A: Eliminating entries adjust the totals of the individual account balances of the separate…
Q: CERISE Company uses accrual basis of accounting. Wages expense account had a balance of P255,000 at…
A: Cash paid for wages can be calculated by adding up wages expense and deducting ending wages payable…
What is the net effect of the errors in FIERY’s December 31
Step by step
Solved in 2 steps
- 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?(Error Analysis) Peter Henning Tool Company's December 31 year-end financial statements contained the following errors. December 31, 2020 December 31, 2021 Ending inventory $9,600 understated $8,100 overstated Depreciation expense $2,300 understated — An insurance premium of $66,000 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 $15,000 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.) Instructions a. Compute the total effect of the errors on 2021 net income. b. Compute the total effect of the errors on the amount of Henning's working capital at December 31, 2021. c. Compute the total effect of the errors on the balance of Henning's retained earnings at…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?
- (Error Analysis) Peter Henning Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2017 December 31, 2018 Ending inventory $9,600 understated $8,100 overstated Depreciation expense $2,300 understated — An insurance premium of $66,000 was prepaid in 2017 covering the years 2017, 2018, and 2019. The entire amount was charged to expense in 2017. In addition, on December 31, 2018, fully depreciated machinery was sold for $15,000 cash, but the entry was not recorded until 2019. There were no other errors during 2017 or 2018, and no corrections have been made for any of the errors. (Ignore income tax considerations.)Instructions(a) Compute the total effect of the errors on 2018 net income.(b) Compute the total effect of the errors on the amount of Henning’s working capital at December 31, 2018.(c) Compute the total effect of the errors on the balance of Henning’s retained earnings at December 31, 2018.Teal Tool Company's December 31 year-end financial statements contained the following errors. Ending inventory Depreciation expense December 31, 2020 $10,500 understated $2,400 understated Total effect of errors on net income $ An insurance premium of $69,000 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 $16,000 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 on working capital $ December 31, 2021 understated overstated (b) Compute the total effect of the errors on the amount of Teal's working capital at December 31, 2021. $8,200 overstated Total effect on retained earnings (c) Compute the total effect of the errors on the balance of…The inventory at the end of the year was understatedby $14,750. (a) Did the error cause an overstatementor an understatement of the gross profit forthe year? (b) Which items on the balance sheet atthe end of the year were overstated or understatedas a result of the error?
- During 2024, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2022 understated by 2023 overstated by $ 127,000 157,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2024, before any adjustments @gnore income taxes 2. Prepare a journal entry to correct the errors Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the effect of these errors on retained earnings at January 1, 2024, before any adjustments. (fonare income tas) Retened samimgs would be Required 2 >The adjusted (audited) income statement of Alex Kwon Corp. shows a net income of P175,000 for the year ended December 31, 2020. Adjustments were made for the following errors: • December 31, 2019, inventory overstated by P22,500 • December 31, 2020, inventory understated by P37,500 • A P10,000 customer's deposit received in December 2020, was credited to sales in 2020. The goods were actually shipped in January 2021. What is the unadjusted net income of Alex Kwon Corp. for the year ended December 31, 2020? A. P234,000 B. P125,000 C. P170,000 D. P200,000The 2022 and 2023 financial statements of Marigold Inc. contained the following errors: Ending Inventory Insurance Expense O 2022 $24840 understated $13640 overstated $13640 understated $30040 understated $10400 overstated 5200 understated 2023 $16640 understated Assuming that none of the errors were detected or corrected, by what amount will 2023 income before taxes be overstated or understated? 3000 overstated
- The 2022 and 2023 financial statements of Martinez Inc. contained the following errors: Ending Inventory Insurance Expense 2022 $15400 overstated $5200 overstated $15400 understated $5200 understated $10300 overstated 5100 understated 2023 $16480 understated 2900 overstated Assuming that none of the errors were detected or corrected, by what amount will 2022 income before taxes be overstated or understated?If Wakowski Companys ending inventory was actually $86,000 but was adjusted at year end to a balance of $68,000 in error, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: Equity