Answer the following and give solutions in each number.

Chapter 6 Correction of Errors PROBLEM 6-2 Counterbalancing Errors financial statements of Jane Corporation: adjust up te You discovered the following errors in connection with your examination 21 Accrued interest receivable of P15,000 was not recorded at the end of 31 The company aldone-year Insurance premium of P24,000 effective to T! Accrued rent expense of P10,000 was not recorded at the end of 2020 2020. The entire amount was debited to expense account and no 4 The company leased a portion of its building for P40,000. The term of was made at the end of 2020. lease is one year ending April 30, 2021. Collection of rent was credited to revenue account. At the end of 2020, no entry was made to take unearned portion of the amount collected The following data were extracted from the financial statements of Corporation: 2020 2021 Net Income 100,000 150,000 Working capital 300,000 400,000 RE end of the year 100,000 250,000 Questions: Based on the above data, determine the following: 1. Net income in 2020 a P95,000 c P90,000 b. 196,000 d. P105,000 2 Worlding capital, end of 2020 a. P295,000 b. P305,000 c. P305,000 d. P290,000 3. Retained earnings, end of 2020 a. 195.000 b. 196,000 4. Net income in 2021 a P155,000 b. P139,000 c. P90,000 d. P105,000 c. P145,000 d. P161,000 5. Working capital, end of 2021 a. P406,000 c. P410,000 b. P400,000 d. P385,000 6. Retained earnings, end of 2021 a. P250,000 c. P244,000 b. P260,000 d. P235,000 7. Prepare adjusting entries assuming errors were discovered in (a) 2020, 2021, and (c) 2022