Question: Solution and computation PROBLEM 6-1 Income Statement and SFP Errors You discovered the following errors in connection with your examination of the financial statements of

Solution and computation

PROBLEM 6-1 Income Statement and SFP Errors You discovered the following errors in connection with your examination of the financial statements of Jessica Corporation: 1) Interest expense of P20,000 in 2020 was erroneously debited to rent expense. 2) Accounts receivable of P30,000 in 2020 was erroneously debited to notes receivable. The following data were extracted from the financial statements of Jessica 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. P100,000 c. P130,000 b. P120,000 d. P150,000 2. Working capital, end of 2020 a. P300,000 c. P270,000 b. P330,000 d. P350,000 3. Retained earnings, end of 2020 a. P100,000 c. P130,000 b. P120,000 d. P150,000 4. Net Income in 2021 a. P150,000 c. P170,000 b. P130,000 d. P180,000 5. Working capital, end of 2021 a. P430,000 c. P450,000 b. P420,000 d. P400,000 6. Retained earnings, end of 2021 a. P250,000 c. P300,000 b. P270,000 d. P240,000 7. Prepare adjusting entries assuming errors were discovered in (a) 2020, (b) 2021, and (c) 2022

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