Tricias, a 90% owner of Trina, sold merchandise at a sales price of P60,000 to Trina during the 2014 fiscal year. This represented a markup of 10% on the selling

Tricias, a 90% owner of Trina, sold merchandise at a sales price of P60,000 to Trina during the 2014 fiscal year. This represented a markup of 10% on the selling price. Trina ending inventory contained 30% of the merchandise purchased during the year from Tricias. When preparing the 2014 consolidated statements the accountant failed to adjust for the intercompany profit in ending inventory. The impact of this omission on consolidated statement was to a. Understate net income, P1,800 and overstate ending inventory, P1,800 b. Overstate net income, P1,800 and understate ending inventory, P1,800 c. Understate net income, P6,000 and overstate retained earnings, P6,000 d. Overstate net income, P1,800 and overstate ending inventory, P1,800

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