Error Correction & Statement of Cashflow

On December 31, 2023, Jace Company had the following balances in the accounts maintained at First State Bank

Checking account #101 1,750,000

Checking account #201 (100,000)

Time deposit 250,000

Commercial papers 1,000,000

90-day treasury bill, due February 28, 2024 500,000

180-day treasury bill, due March 15, 2017 800,000

The entity classified investments with original maturities of three months or less as cash equivalents.

On December 31, 2023, what amount should be reported as cash and cash equivalents?

• 3,400,000

• 2,000,000

• 2,400,000

• 3,200,000

• 4,200,000

• 2,400,000

• 4,500,000

• 5,400,000

• 1,720,000 provided

• 1,220,000 provided

• 540,000 provided

• 380,000 used

• 7,170,000

• 7,160,000

• 5,970,000

• 5,350,000

What is the net effect of the errors on net income for 2016?

• 240,000 understated

• 240,000 overstated

• 220,000 overstated

• 260,000 understated

What is the net effect of the errors on retained earnings on December 31,2016?

• 260,000 understated

• 260,000 overstated

• 220,000 understated

• 220,000 overstated

Conn Company reported a retained earnings balance of P4,000,000 on January 1, 2023. In 2023, the entity

determined that insurance premiums of P900,000 for the three-year period beginning January 1, 2022 had been paid and fully expensed in 2022. The income tax rate is 30%.

• 3,400,000

• 4,420,000

• 4,600,000

• 3,580,000

• 134,000 overstated

• 278,000 understated

• 358,000 understated

• 406,000 understated

• 260,000 increase

• 260,000 decrease

• 410,000 decrease

• 210,000 decrease

On January 1, 2023, Raft Company discovered that it had incorrectly expensed a P210,000 machine purchased on January 1, 2020. The entity estimated the machine's original useful life to be 10 years and the residual value at P10,000. The entity used the straight line method of depreciation and is subject to a 30% tax rate. in the December 31, 2023 financial statements, what amount should be reported as a prior period adjustment?

• 165,000

• 102,900

• 105,000

• 168,000