Use the following information for the next three (3) questions:

Silhouette Corporation reported profit for the year 2014 and

2015 at P550,000 and P700,000, respectively. Your

audit of the company's account disclosed the need for adjustments as follows:

2014

2015

Overstatement of ending inventory due to error in pricing

29,000

33,000

Omission of depreciation on newly

-

acquired

equipment

15,000

15,000

Understatement of

accrued income

22,000

18,000

A purchase of merchandise was not recorded until the following year, and also was not

included in

the ending inventory

60,000

13)

The adjusted profit for 2015 was

14)

What is the

effect of the foregoing errors (overstatement) on total assets at December 31, 2015?

15)

What is the effect on the foregoing errors on retained earnings at December 31, 2014?