Manozo, Pamela L.

BSA 3-A

4 Quiz 1

1. Adjusted
a. Net Income for 2X14 = P65,000
b. Net Income for 2X15 = P235.000
c. Retained Earnings 2X14 = P65.000
d. Retained Earnings 2X15 = P300,000

Account Title 2X14 2X15

Net Income P120,000 P180,000
Purchases recorded on 2X14 20,000 -20,000
Sales Record on 2X14 -50,000 50,000
Overstatement of Inventory -25,000 25,000
Adjusted Net Income 65,000 235,000

Retained Earnings Beginning 65,000

Adjusted Net Income 65,000 235,000
Adjusted Retained Earnings 65,000 300,000

2. Give the effect of each error in the 2X14 net assets

3. Prepare adjusting entries assuming errors were discovered in

a. 2X14
b. 2X15
c. 2X16