Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE SOLVE ALL WITH SOLUTIONS. I WILL GIVE A THUMBS UP IF VERY ACCURATE THANK YOU! Use the following information for the next four (4)
PLEASE SOLVE ALL WITH SOLUTIONS. I WILL GIVE A THUMBS UP IF VERY ACCURATE
THANK YOU!
Use the following information for the next four (4) questions: Lakeland Company reported profits of P1,600,000 and P2,400,000 in 2021 and 2022, respectively. In 2023, the following prior period errors were discovered: Prepaid supplies in 2021 were overstated by P80,000. Accrued salaries payable in 2021 were understated by P160,000 Repairs and maintenance expenses in 2021 amounting to P400,000 were erroneously capitalized and being depreciated over a period of 4 years. The unadjusted balances of retained earnings are P6,400,000 and P8,800,000 as of December 31, 2021 and 2022, respectively. 7) How much is the correct profit in 2021? A. 1,720,000 B. 1,610,000 C. 1,060,000 D. 1,006,000 8) How much is the correct profit in 2022? A. 2,740,000 B. 2,704,000 C. 2,610,000 D. 2,160,000 9) How much is the correct retained earnings in 2021? A. 5,860,000 B. 5,806,000 C. 5,520,000 D. 5,420,000 10) How much is the correct retained earnings in 2022? A. 8,960,000 B. 8,860,000 C. 8,600,000 D. 8,420,000Step 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