Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Give the effect of each error in the 2x14 net assets 2. Prepare adjusting entries assuming errors were discovered in 2x14, 2x15 and 2x16
1. Give the effect of each error in the 2x14 net assets 2. Prepare adjusting entries assuming errors were discovered in 2x14, 2x15 and 2x16
2x14 120,000 2X15 180,000 In an audit of the statement for the year ended December 31, 2X14, the following errors were discovered: Advances to the supplier in 2X14 were recorded as purchases, but the merchandise was received in the following year, P20,000 Advances from the customer in 2X14 recorded as sales in 2X14, but the goods were delivered in the following year, P50,000 On December 31, 2X14, the ending inventory was overstated by P25,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started