JUMPER Company uses the periodic inventory system. An audit of its account for the year revealed...

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JUMPER Company uses the periodic inventory system. An audit of its account for the year revealed the following: 2020 2021 2022 Per books: Retained Earnings, January 1 Dividends declared during the year Net income for the year Omissions: Interest Payable, December 31 Rent received in advance, December 31 Interest receivable, December 31 Depreciation expense Equipment purchased at year-end charged to expense (3 years useful life) Goods in transit at December 31, for which purchase entry was not made Goods in transit at December 31, for which purchase entry was not made P345,000 26, 000 85,000 2,300 1,700 4,000 2,500 1. Correct Net income for 2020, 2021 and 2022 2. Retained Earnings per audit after closing on December 31, 2021 20,000 Note: Assume no correcting entries were made in 2020, 2021 and 2022. Answer the following: P404, 000 64,000 110,000 1,900 2,300 3, 200 2,500 45,000 15, 000 3. Retained Earnings per books after closing on December 31, 2022 4. How much is the overstatement (understatement) in total assets on December 31, 2022? 5. By how much will working capital on December 31, 2021, be overstated or understated? 6. By how much will working capital on December 31, 2022 be overstated or understated? P450, 000 210,000 160, 000 1,400 3, 200 1,700 2,500 JUMPER Company uses the periodic inventory system. An audit of its account for the year revealed the following: 2020 2021 2022 Per books: Retained Earnings, January 1 Dividends declared during the year Net income for the year Omissions: Interest Payable, December 31 Rent received in advance, December 31 Interest receivable, December 31 Depreciation expense Equipment purchased at year-end charged to expense (3 years useful life) Goods in transit at December 31, for which purchase entry was not made Goods in transit at December 31, for which purchase entry was not made P345,000 26, 000 85,000 2,300 1,700 4,000 2,500 1. Correct Net income for 2020, 2021 and 2022 2. Retained Earnings per audit after closing on December 31, 2021 20,000 Note: Assume no correcting entries were made in 2020, 2021 and 2022. Answer the following: P404, 000 64,000 110,000 1,900 2,300 3, 200 2,500 45,000 15, 000 3. Retained Earnings per books after closing on December 31, 2022 4. How much is the overstatement (understatement) in total assets on December 31, 2022? 5. By how much will working capital on December 31, 2021, be overstated or understated? 6. By how much will working capital on December 31, 2022 be overstated or understated? P450, 000 210,000 160, 000 1,400 3, 200 1,700 2,500

Answer rating: 100% (QA)

1 Correct Net income for 2020 2021 and 2022 Adjusted net income for each year 2020 Net income Interest receivable Interest payable Depreciation expens... View the full answer