Question
You examined the records of Eli Company for the year ended, December 31, 2022. You discovered the following errors: - Ending inventory was overstated by
You examined the records of Eli Company for the year ended, December 31, 2022. You discovered the following errors:
- Ending inventory was overstated by P15,000.
- Beginning inventory was understated by P6,000.
- Goods costing P150,000 was received towards the end of 2022 and included in the inventory. Purchases was recorded in 2023 when payment for the account was made.
- Profit for the year (before any adjustments above) was P900,000.
REQUIREMENTS:
By how much should the profit be increased or decreased because of the errors?
What is adjusted profit for the year ended December 31, 2022?
What is adjusted profit for the year ended December 31, 2022?
a. 1,071,000
b. 729.000
c. 741,000
d. 1,029.000
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Financial Accounting Theory And Analysis Text Readings And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
8th Edition
0471652431, 9780471652434
