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Determine the following as a result of your audit:
a. How much is the adjusted retained earnings as of December 31, 2020?
b. How much is the adjusted retained earnings as of December 31, 2021?
c. How much is the adjusted retained earnings as of December 31, 2022?
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- You audited the financial statements of PIS Corp. for the first time in 2022. The company started its operation in early 2020. Upon investigation, you discovered the following information: a. The company reported the net income at P104,000, P140,000 and P160,000 in 2020, 2021, and 2022, respectively. b. The company consistently omitted the following: 2020 2021 2022 Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 c. Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000…You audited the financial statements of PIS Corp. for the first time in 2022. The company started its operation in early 2020. Upon investigation, you discovered the following information: a. The company reported the net income at P104,000, P140,000 and P160,000 in 2020, 2021, and 2022, respectively. b. The company consistently omitted the following: 2020 2021 2022 Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 c. Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000…You audited the financial statements of PIS Corp. for the first time in 2022. The company started its operation in early 2020. Upon investigation, you discovered the following information: a. The company reported the net income at P104,000, P140,000 and P160,000 in 2020, 2021, and 2022, respectively. b. The company consistently omitted the following: 2020 2021 2022 Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 c. Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000…
- You have been engaged to prepare audited financial statement figures for BOURNE, Inc. The records are in agreement with the following balance sheet: BOURNE, INC. Balance Sheet December 31, 2007 Assets Liabilities and Capital P10,000 Accounts Payable 12,000 Notes Payable 13,000 Common Stock 25,000 Additional paid-in capital 40,000 Retained Earnings P100.000 P10,000 3,000 20,000 40,000 27,000 Р100.000 Cash Accounts receivable Notes receivable Inventory Equipment- net A review of the records of the corporation indicates that the errors and omissions listed in the table below had not been corrected during the applicable years: Inventory Understated P6,000 Inventory Overstated Depreciation Expense P250 500 Prepaid Expense Unearned Accrued December 31 Income Expense P200 75 2004 P900 700 --- 2005 2006 P7,000 8,000 P400 150 500 100 --- 2007 9,000 350 600 300 50 The net income according to the records is: 2005, P7,500, 2006, P6,500; and 2007, P5,500. No dividends were declared during these…You were assigned to perform audit procedures on the investments account of Classic Corporation for 2020, yourfirst-time audit of the client. The current asset portion of Classic Corporation’s statement of financial positionshows the following information as of December 31, 2019: Current Assets Note As of December 31, 2019 Cash and cash equivalents 5, 14 P 3,985,000 Receivables, net 6, 14 7,742,000 Inventories 7 15,859,000 Short-term investments 8, 14 3,280,000 Other current assets 10 352,000 Total current assets P 31,218,000 Note 8 on investments described the investments as equity securities held primarily for being traded to takeadvantage of price fluctuations in the market. The following information shows the breakdown of the investmentaccount per client’s subsidiary records: Held for Trading Securities: Securities No. of Shares Market Price Amount SMC Ordinary 5,000…You audited the financial statements of PIS Corp. for the first time in 2021. The company started its operation in early 2019. Upon investigation, you discovered the following information: - The company reported the net income at P104,000, P140,000 and P160,000 in 2019, 2020, and 2021, respectively. - The company consistently omitted the following: 2019 2020 2021Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 - Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000 in 2019, 2020, and 2021, respectively. - Inventory counts were conducted on December 31 of each year before any deliveries and receipts were made on the said date. Sales were made consistently at a gross profit…
- You auditing Adel Corp's various liability accounts. The following schedule of liabilities was presented to you by the company's accountant in relation to your audit Accounts payable P460,000 Accrued expenses 29,400 Warranties payable 153,250 Salaries payable 268,500 10%, Note payable - bank 2,000,000 Audit Notes: Continuation in the pictures What is the correct balance of the accrued expenses account?You audited the financial statements of PIS Corp. for the first time in 2021. The company started its operation in early 2019. Upon investigation, you discovered the following information: - The company reported the net income at P104,000, P140,000 and P160,000 in 2019, 2020, and 2021, respectively. - The company consistently omitted the following: 2019 2020 2021 Prepaid insurance 2.000 4.000 6,000 Accrued salaries 7.500 6.200 8,300 Unearned rent 5.000 6.000 7.000 Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12.000 and P14,000 in 2019, 2020, and 2021. respectively. Inventory counts were conducted on December 31 of cach year bcfore any deliveries and receipts were made on the said date. Sales were made consistently at a gross profit rate of 40% of sales. Purchases in transit at cach year end amounted to P5,000 and P7.000 in 2020 and…You audited the financial statements of PIS Corp. for the first time in 2021. The company started its operation in early 2019. Upon investigation, you discovered the following information: The company reported the net income at P104,000, P140,000 and P160,000 in 2019, 2020, and 2021, respectively. The company consistently omitted the following: 2019 2020 2021 Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000 in 2019, 2020, and 2021, respectively. Inventory counts were conducted on December 31 of each year before any deliveries and receipts were made on the said date. Sales were made consistently at a gross profit rate of 40% of sales. Purchases in transit at each year end…
- You audited the financial statements of PIS Corp. for the first time in 2021. The company started its operation in early 2019. Upon investigation, you discovered the following information: The company reported the net income at P104,000, P140,000 and P160,000 in 2019, 2020, and 2021, respectively. The company consistently omitted the following: 2019 2020 2021 Prepaid insurance 2,000 4,000 6,000 Accrued salaries 7,500 6,200 8,300 Unearned rent 5,000 6,000 7,000 Deliveries of merchandise to customers at December 31 of each year end were recorded as sales upon collection the following year. The corresponding sales price of the said deliveries were P15,000, P12,000 and P14,000 in 2019, 2020, and 2021, respectively. Inventory counts were conducted on December 31 of each year before any deliveries and receipts were made on the said date. Sales were made consistently at a gross profit rate of 40% of sales. Purchases in transit at each year end…You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity: Preferred stock, $100 par $ 33,000 Common stock, $10 par 68,000 Capital surplus (15,100) Retained earnings 172,000 Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries: Credit (Debit) Additional paid-in capital on common stock $ 27,700 Capital from donated land 16,900 Treasury stock (400 common shares at cost) (5,600) Additional paid-in capital on preferred stock 2,000 Stock dividend (50%) (20,000) Prior period adjustment (net of income taxes) (10,100) Loss from fire (uninsured), 2018 (18,100) Property dividend declared (5,600) Cash dividends declared (23,300) Balance $ (36,100) Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity: Preferred stock, $100 par $ 33,000 Common stock, $10 par 68,000 Capital surplus (15,100) Retained earnings 172,000 Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries: Credit (Debit) Additional paid-in capital on common stock $ 27,700 Capital from donated land 16,900 Treasury stock (400 common shares at cost) (5,600) Additional paid-in capital on preferred stock 2,000 Stock dividend (50%) (20,000) Prior period adjustment (net of income taxes) (10,100) Loss from fire (uninsured), 2018 (18,100) Property dividend declared (5,600) Cash dividends declared (23,300) Balance $ (36,100) Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…