Ma. Faith R.

Tan May 10, 2021

BSA-2A | ACCTG7

Exercise no. 6 (Problem 16-3; IA3 Valix 2020)

Requirement a:
2019 2020
a. Collection - -
b. Unrecorded Purchases (₱ 160 000)
c. Depreciation Understated (₱ 90 000)
d. Error in recording supplies -
e. Unrecorded Sales 300 000
Net Correction (90 000) 140 000
Net Income, before 4 000 000 5 000 000
Net Income ₱ 3 026 000 ₱ 5 140 000

Requirement b:
2020
Dec 31 Cash ₱ 100 000
Accounts Receivable ₱ 100 000
Purchases 160 000
Accounts Payable 160 000
Supplies 20 000
Purchases 20 000
Retained Earnings 90 000
Acc. Depreciation 90 000
Accounts Receivable 300 000
Sales 300 000