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 companys 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 commission receivable 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

33) The adjusted profit for 2015 was

A. 737,000 B. 710,000 C. 700,000 D. 677,000

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

A. 66,000 B. 45,000 C. 36,000 D. 30,000

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

A. 82,000 over B. 67,000 over C. 38,000 under D. 22,000 over