Problem 2 ‘Examplar Company provided the folowing jn December 93, 201 pccounts receivable : cunts ty officerenot currently collect “pavances t officers Sinking fu uM 7 Bulli sfundable deposit Penge Meng aah auivalente, (A 7 Cash aorender ae ACR Seeupment MA Mame gttcenon note receivable (# Zand and al fr tpeeaton LEetawe software 4:4 2 Prepaid enve 2 Fishacial aevets held fort TMlncarnedrenvinonme Cb * Unenengerningncaetic®) put 64 Fieune aoc preteromee | © f Bhar on bonds payeble qc, - MUP st § preference share capital 2 Share premium ~ ordinary & Nowe yasable * S55 payable ‘Accounts payable 1 Accrued ealaries n + accreted deprecintion-building WA < AiStmulated dopreciation-equipineat, “m0 7 Aifowenee far doubeful accounts = CB “Bonds payable ace 'Drndends pave fe Ordinary thave capital Withholding tox payable 2 Prelerence share redemption fund 9A rading (> deteatatein a Mace nn Required: Prepare a statement of financial posit 2a oa Sear igiaaereeee a a 1, Se Cems ng mr cmin ey F, Ags Saati ra cen 2 vied teenie a nnd arts ae 2. en en Tey tolled nem ney 73a ele ag ‘SerprtsaeSearate tends epee antsy any 5008 4 Pitter SE mentee inne ee Soe al Sete innmttieibee a mie cere eae ee ae Melo i bar wep 026 pre amb, Seed jon = 8 er ws ire re ra ae soccer aE ck bus Py ‘Serer pe ise mee 8 ena po Pa Repco no enim Ba syne este ane, rite moments =P Re oats { eaeeettiecementacgredetint : eee aoe es i igrieemmeneaaemaet ata Metairel: Patotre o tended Thiel SoldnceSao ete arent tom cee cet SEES cans mens crouna on Seer cireeginne Seoeeeer eNO Sere at ae een deh ok Lon, Paes 2 Pere tecaatae Tce ohecstacrs “eer a nc PD psi SSE seagate nies ene one ty stain gr a ee + Serena . ee“] December 31, 2015, Susan Company sold merchandise for P99,009, A ft em “The terms of the sale were 1/30, FOB shipping point. The mene Shipped on December 31, 2015, and arived a day on January 2016, Duce eerie sale was not recorded until January 2016 and the mechan se was se sold ta Secale petite Starkup on cost was included in Susan's inventory at December 31, 2015, 8 * 25% vas a result, what i the effect on Susan’s net profit for the year ended D % —_ 2015? é ‘Mae Company began operations on January 1, 2014. Financial stateme ended December 31, 2014 and 2015, contained the following errors nt 1 Years 2014 2015 Ending inventory 16,000 understated 15,000 overstated Depreciation expense 6,000 understaied Insurance expense 10,000 overstated 10,000 understated Prepaid insurance 10,000 understated In addition, on Dezember 31, 2015, fully depreciated machinery was sold for P10,800 ‘cash, out the sale was not recorded until 2016. There were no other errors during 2014 or 2015 and no corrections have been made for any of the errors. 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