1.) What is the adjusted net income of the firm for the year ended December 31, 2021?

a.55,000

b.75,000

c.100,000

d.175,000

2.) Swerte Co. received P45,600 on May 1, 2020 for one years rent in advance and recorded the transaction with a credit to real account. The December 31,2020 Adjusting entry is?

a. Debit - Unearned rent Credit - Rent Revenue for P30,400

b. Debit -Unearned rent Credit - Rent Revenue for P15,200

c. Debit -Rent Revenue Credit - Unearned rent for P30,400

d. Debit -Rent Revenue Credit - Unearned rent for P15,200

3.) What is the amount of the gross sales?

a. 1,780,000

b. 2,062,000

c. 2,080,000

d. 2,130,000

The unadjusted income statement of Astra Zenica Co. shows a net income of P125,000 for the year ended December 31, 2021. The following data were discovered in the course of the examination of the company's records: December 31, 2020 Inventory is overstated by P22,500 * December 31, 2021 Inventory is understated by P37,500 A P10,000 customer's deposit received in December 2021, was credited to sales in 2021. The goods were actually shipped in January 2022. What is the adjusted net income of the firm for the year ended December 31, 2021? Percy Company is engaged in a small export business. The company maintains limited records. Most of the company's transactions are summarized in a cash journal; non- cash transactions are recorded by making memo entries. The following are abstracted from the company's records: Accounts receivable - trade 370,000 increase Notes receivable - trade 200,000 decrease Accounts payable - trade 150,000 decrease Notes payable trade 200,000 increase Notes payable bank 300,000 increase Sales returns (P50,000 was refunded) 80,000 Sales discounts 20,000 Purchase returns (P30,000 was refunded) 80,000 Purchase discounts 35,000 Accounts written off 60,000 Recovery of accounts previously written off 18,000 Cash sales 300,000 Cash purchases 250,000 Cash received from account customers 1,500,000 Cash payment to trade creditors 1,200,000