Problem 3. The accumulated profits of New Era Corporation has a beginning unadjusted balance of P550,000. The errors were discovered as follows: 1) the prepaid expense of P35,000 as of statement of financial position date last yea was not recorded. 2) the prepaid expense as of the end of this year in the amount of P50,000 was also no recorded. 3) the office equipment is overstated last year by P40,000 due to under depreciation. Net Income for the period is P400,000. Required: 1. Journalize the above transactions. 2. Compute the adjusted balance of accumulated profits.

Problem 3. The accumulated profits of New Era Corporation has a beginning unadjusted balance of P550,000. The errors were discovered as follows: 1) the prepaid expense of P35,000 as of statement of financial position date last yea was not recorded. 2) the prepaid expense as of the end of this year in the amount of P50,000 was also no recorded. 3) the office equipment is overstated last year by P40,000 due to under depreciation. Net Income for the period is P400,000. Required: 1. Journalize the above transactions. 2. Compute the adjusted balance of accumulated profits.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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