390.300 305.000 LIABILITIES AND CAPITAL Accounts payable 67,800 Notes payable Capital 322.500 66,000 30,000 210.000 Page 2 390.300 306,000 The following errors were discovered by the auditor who was engaged on January 2019 to examine the financial statements of the company. a Inventory was overstated by P9,000 at the end of 2017. b. Accrued liabilities of P3,600 were not recorded at the end of 2017. c. Inventory of supplies of P2.100 was not recorded as an asset at the end of 2017, and inventory of supplies of P900 at the end of 2018 was debited to an expense. d. Accrued revenue of P2,400 at the end of 2018 was not recorded as a receivable. e. An allowance for doubtful accounts equal to 6% of accounts receivable should be established at the end of each year. No accounts receivable was written off during the two years f Depreciation of P3,000 was not recorded in 2017 and depreciation of P6,000 was not recorded in 2018, 8. Net adjustment on 2017 net income a. (P 19,350) C. P 5.550 b. P 40,650 d. P 118,050 9. Net adjustment on 2018 net income a. (P 19,350) c. P 5.550 b. P 40,650 d. P 118,050 10.1 Corrected 2017 net income a (P 19.350) C. P 5.550 b. P 40,650 d. P 118,050 11. Corrected 2018 net income a. (P 19.350) c. P 5.550 b. P 40,650 d. P 118,050 12. 13. 14. 15. 11 16. 17. Correcting entry on early 2019 assuming the 2018 accounts are closed a Debit DUB, Capital by P13,800 b. Credit DUB, Capital by P13,800 c. Credit Non Trade Receivables by P2,400 d. Debit accumulated depreciation by P9,000 Adjusted capital of DUB in 2018 a P 150,000 c. P 190,650 d. P 158.700 c. P 376,520 d. P 203,250 b. P 308,700 Adjusted total assets on December 31, 2017 a. P 290,250 b. P 295,500 Adjusted total liabilities and capital on December 31, 2018 a P 290,250 b. P 295,500 CP 376,500 d. P 203,250 C. P 67,800 d. P 203.250 Adjusted current assets on December 31, 2018 a. P 290,250 b P 295.500 Adjusted total current liabilities on December 31, 2018 a P 290,250 b. P 295,500 c. P 67.800 d. P 203,250