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Quiz 1: Accounting Policies, Estimates and Errors: Problem No. 1 (15 Points)

This document contains 3 practice problems testing accounting concepts related to accounting policies, estimates, and errors. Problem 1 asks about corrected net income and retained earnings amounts for 2016-2018 after errors were identified. Problem 2 asks about unadjusted and adjusted net income for 2018 and the impact on retained earnings. Problem 3 asks about adjusted net income/loss amounts for 2017-2019, the effect on net working capital in 2019, and the adjusted stockholders' equity balance at the end of 2019 after correcting for errors.

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Noeme Lansang
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331 views2 pages

Quiz 1: Accounting Policies, Estimates and Errors: Problem No. 1 (15 Points)

This document contains 3 practice problems testing accounting concepts related to accounting policies, estimates, and errors. Problem 1 asks about corrected net income and retained earnings amounts for 2016-2018 after errors were identified. Problem 2 asks about unadjusted and adjusted net income for 2018 and the impact on retained earnings. Problem 3 asks about adjusted net income/loss amounts for 2017-2019, the effect on net working capital in 2019, and the adjusted stockholders' equity balance at the end of 2019 after correcting for errors.

Uploaded by

Noeme Lansang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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QUIZ 1: ACCOUNTING POLICIES, ESTIMATES AND ERRORS

PROBLEM No. 1 (15 POINTS)

1. What is the corrected 2016 net income?


a. 124,200 b. 90,900 c. 121,500 d. 71,700
2. What is the corrected 2017 net loss?
a. 53,400 b. 66,000 c. 54,300 d. 59,700
3. What is the corrected 2018 net loss?
a. 64,740 b. 62,340 c. 56,040 d. 71,040
4. What is the corrected retained earnings on dec 31 2017?
a. 226,200 b. 163,800 c. 100,800 d. 183,060
5. What is the corrected retained earnings on dec 31 2018?
a. 63,000 b. 99,060 c. 92,760 d. 36,060

PROBLEM No. 2 (8 POINTS)

1. The unadjusted net income for the year 2018 is:


a. P 253,500 b. P 256,700 c. P 263,700 d. P 261,700
2. By how much would the December 31, 2019 retained earnings be misstated if no adjustments were made
for the above errors?
a. Retained earnings overstated by P11,800. c. Retained earnings overstated by P15,800.
b. Retained earnings overstated by P12,800. d. Retained earnings overstated by P16,800.
3. The adjusted net income for the year 2018 is:
a. P 315,900 b. P 308,400 c. P 314,900 d. P 310,900

PROBLEM No. 3 (10 POINTS)

Ignoring income tax effects, answer the following questions:

1. Adjusted net income/net loss for 2017:


a. (6,475) b. 225 c. (6,225) d.775

2. Adjusted net income/net loss for 2018:


a. 6,025 b.(1,475) c.5,525 d.(8,475)

3. Adjusted net income/net loss for 2019:


a. 22,000 b.14,000 c.6,000 d.22,150

4. What is the effect of these errors on the net working capital at the end of 2019?
a. P 8,000 understated c. P 16,850 understated
b. P 8,900 understated d. P 9,250 understated

5. What is the adjusted balance of the stockholders' equity at December 31, 2019?
a. P 90,000
b. P 95,900
c. P 103,850
d. P 96,250 sa scribd 95000 letter A

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