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. 8,420,000