1.The following were discovered in the course Of examination Of the

Silver Company's financial records.

Year 2014 wages payable for P34,OOO was not recorded.

Accrued vacation pay {or the year 2014 for P62.500 was not recorded because the bookkeeper "never learned that you had to do it

Insurance for a 12-month period purchased on 1, 2014 was charged to expense in the amount of P37,200 because "the amount Of the check is about the same every year".

What is the net effect of the above errors on the January 1, 2015 accumulated profits, understated or overstated by what amount?

2.The following information pertains to Helen Company for the current year:

Monetary assets: January 1250,000

December 31700,000

Monetary liabilities: January 1 100,000

December 31300,000

Increase in net monetary items as restated for

hyperinflation3,500,000

Decrease in net monetary items as restated for

hyperinflation3,000,000

General price index:January 1125

December 31 300

What is the gain or loss on purchasing power for the current year?