3. On December 31, 2018, MSU Co. has accounts payable of P 1 000 000 before possible adjustment for the following: a. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P50 000 purchased FOB shipping point was not yet recorded. b. Goods shipped FOB shipping point from a vendor to ABC, was lost in transit. The invoice cost of P20 000 was not yet recorded. c. Goods shipped FOB shipping point from a vendor to ABC on December 31, 2018 amounting to P8 000 was recorded and included in the year-end physical count as "goods in transit". d. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P10 000 purchased FOB destination was not yet recorded. The goods were received in January 2019. e. Goods with invoice cost of P15 000 was recorded and included in the year-end physical count as “goods in transit". It was found out that the goods were shipped from a vendor under FOB destination. Requirement: Compute for the adjusted accounts payable accounts payable on December 31, 2018.

3. On December 31, 2018, MSU Co. has accounts payable of P 1 000 000 before possible adjustment for the following: a. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P50 000 purchased FOB shipping point was not yet recorded. b. Goods shipped FOB shipping point from a vendor to ABC, was lost in transit. The invoice cost of P20 000 was not yet recorded. c. Goods shipped FOB shipping point from a vendor to ABC on December 31, 2018 amounting to P8 000 was recorded and included in the year-end physical count as "goods in transit". d. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P10 000 purchased FOB destination was not yet recorded. The goods were received in January 2019. e. Goods with invoice cost of P15 000 was recorded and included in the year-end physical count as “goods in transit". It was found out that the goods were shipped from a vendor under FOB destination. Requirement: Compute for the adjusted accounts payable accounts payable on December 31, 2018.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

See similar textbooks

Similar questions

On December 31, 2021, Kalsada Co. has accounts payable of P 5,000,000 before possible adjustment for the following: a)Goods in transit from a vendor to Kalsada on December 31, 2021 with an invoice cost of P100,000 purchased FOB shipping point was not yet recorded. b)Goods shipped FOB shipping point from a vendor to Kalsada was lost in transit. The invoice cost of P70,000 was not yet recorded c)Goods shipped FOB shipping point from a vendor to Kalsada on December 31, 2021 amounting to P40,000 was recorded and included in the year-end physical count as "goods in transit" d) Goods in transit from a vendor to Kalsada on December 31, 2021 with an invoice cost of P50,000 purchased FOB destination was not yet recorded. The goods were received in January 2019. e) Goods with invoice cost of P80,000 was recorded and included in the year-end physical count as "goods in transit". It was found out that the goods were shipped from a vendor under FOB destination. Required: Compute for the…
On December 31, 2018, MSU Co. has accounts payable of P 1 000 000 before possible adjustment for the following: Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P50 000 purchased FOB shipping point was not yet recorded. Goods shipped FOB shipping point from a vendor to ABC, was lost in transit. The invoice cost of P20 000 was not yet recorded. Goods shipped FOB shipping point from a vendor to ABC on December 31, 2018 amounting to P8 000 was recorded and included in the year- end physical count as “goods in transit”. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P10 000 purchased FOB destination was not yet recorded. The goods were received in January 2019. Goods with invoice cost of P15 000 was recorded and included in the year-end physical count as “goods in transit”. It was found out that the goods were shipped from a vendor under FOB destination. Requirement: Compute for the adjusted accounts payable accounts…
On December 31, 2021, PACMAN Co. has accounts payable of ₱ 5,000,000 before after adjustment for the following: a)Goods in transit from a vendor to PACMAN on December 31, 2021with an invoice cost of ₱100,000 purchased FOB shipping point was already recorded. b)Goods shipped FOB shipping point from a vendor to PAACMAN was lost in transit. The invoice cost of ₱70,000 was not yet recorded c)Goods shipped FOB shipping point from a vendor to PACMAN on December 31, 2021 amounting to ₱40,000 was recorded and included in the year-end physical count as “goods in transit” d)Goods in transit from a vendor to PACMAN on December 31, 2021 with an invoice cost of ₱50,000 purchased FOB shipping point was not yet recorded. The goods were received in January 2022. e)Goods with invoice cost of ₱80,000 was recorded and included in the year-end physical count as “goods in transit”. It was found out that the goods were shipped from a vendor under FOB destination. Required: Compute for the unadjusted…
Gear Company’s accounts payable balance at December 31, 2021 was P1,100,000 before considering the following transactions: A. Goods were in transit from a vendor to Gear on December 31, 2021. The invoice price was P80,000 and the goods were shipped FOB shipping point on December 29, 2021. The goods were received on January 4, 2022. B. Goods shipped to Gear, FOB shipping point on December 20, 2021 from a vendor were lost in transit. The invoice price was P50,000. On January 5, 2022, Gear filed a P50,000 claim against the common carrier. In its December 31, 2021 statement of financial position, Gear should report accounts payable of:
The balance in Iwig Company’s accounts payable account at December 31, 2021 was P400,000 before any necessary year-end adjustments relating to the following: A. Goods were in transit to Iwig from a vendor on December 31, 2021. The invoice cost was P50,000. The goods were shipped FOB shipping point on December 29, 2021 and were received on January 4, 2022. B. Goods shipped FOB destination on December 21, 2021 from a vendor to Iwig were received on January 6, 2022. The invoice cost was P25,000. C. On December 27, 2021, Iwig wrote and recorded checks to creditors totaling P30,000 that were mailed on January 10, 2022. 2. In Iwig’s December 31, 2021 statement of financial position, the accounts payable should be
DELTA Company reported on December 31,2021 at P7,000,000 based on physical count of goods priced at cost and before any necessary year end adjustments relating to the following.Included in the physical count were goods billed to a customer FOB Shipping Point on December 30, 2021.These goods had a cost of 200,000 and were picked by the carrier on January 5, 2022.Goods shipped FOB Shipping point on December 28, 2021 from a venfor to Delta were received and recorded on January 4, 2022. The invoice cost was P300,000.What amount should be reported as inventory on December 31, 2021?
Conner Company's accounts payable balance on December 31, 2017 was $1,400,000 before considering the following transactions:  Goods were in transit from a vendor to Conner on December 31, 2017. The invoice price was $250,000, and the goods were shipped FOB shipping point on December 29, 2017. The goods were received on January 4, 2018.  Goods were shipped to Conner FOB destination on December 20, 2017, from a vendor. The invoice price was $125,000. The goods were received on January 1, 2018.Given the above information, on December 31, 2017, Conner should report an accounts payable balance of?
Purchases of P 200,000 in 2021 were recorded as purchases of 2022. What would be the adjusting entry if the error was discovered at December 31, 2022? a. Debit - Purchases, P 200,000; Credit - Retained Earnings, P 200,000. b. Debit - Retained Earnings, P 200,000; Credit - Accounts Payable, P 200,000. c. Debit - Retained Earnings, P 200,000; Credit - Purchases, P 200,000. d. No adjusting entry is necessary
Pork Company's accounts payable at December 31, 2020 totaled P20,000,000 before any necessary year-end adjustments relating to the following transactions: Goods shipped FOB destination on December 31, 2020, from a vendor to Pork were lost in transit. The invoice cost of P3,000,000 was not recorded by Pork. On January 5, 2021, Pork notified the vendor of the lost shipment. On December 31, 2020, Pork wrote and recorded checks to creditors totaling P5,000,000 causing an overdraft of P1,000,000. The checks were mailed on January 5, 2021. Goods shipped FOB warehouse on December 31, 2022 from a vendor to Pork were received and recorded on January 5, 2021. The invoice cost was P2,000,000 At December 31, 2022, what amount should Pork report as accounts payable? 27,000,000 26,000,000 30,000,000 23,000,000
Purchases of P 200,000 in 2021 were recorded as purchases of 2022. What would be the adjusting entry if the error was discovered at December 31, 2022? Debit - Purchases, P 200,000; Credit - Retained Earnings, P 200,000. Debit - Retained Earnings, P 200,000; Credit - Accounts Payable, P 200,000. No adjusting entry is necessary Debit - Retained Earnings, P 200,000; Credit - Purchases, P 200,000.
On June 1, Calumet Corp. paid $25,000 for inventory previously purchased on account. Which of the following statements is correct with respect to how this transaction should be shown on the transaction worksheet? Select one: a. The cash account will decrease and the deferred revenue account will decrease. b. The inventory account will decrease and the cash account will decrease. c. The cash account will decrease and the accounts payable account will decrease. d. The cash account will decrease and the retained earnings account will decrease. e. The cash account will increase and the accounts payable account will increase.
DATA PROVIDEDThe pre-adjustment trial balance of Wing-It (Pty) Ltd as at 31 August 2022 is presented:AccountDebitCreditProfessional fees765 000Goods sold435 000Cost of sales215 000Interest received19 500Interest on loan6 300Bank charges3 200Cleaning1 500Staff welfare650Salaries and wages35 850Municipal services6 850Printing and stationery16 715Telephone18 600Fuel and oil56 000Repairs and maintenance: Building5 200Repairs and maintenance: Vehicles6 850Capital: Blue520 000Capital: Green630 000Drawings: Blue35 000Drawings: Green27 000Current account: Blue2 500Current account: Green6 400Retained income265 000Land500 000Buildings1 500 000Accumulated depreciation on buildings21 000Vehicles380 000Accumulated depreciation on vehicles65 000Equipment and electronics79 500Accumulated depreciation on equipment and electronics1 5008% Long-term loan325 000Bank: FNB168 000Bank: ABSA32 000Debtors control account85 000Allowance for credit losses6 400Creditors control account78 600Petty cash2…