A company's accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end ad
A company's accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end ad
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...
Related questions
Question
A company's accounts payable dated December 31, 2021, totaled P1,000,000 before any necessary year-end
adjustments relating to the following transactions and information:
On December 27, 2021, the company wrote and issued checks to creditors totaling P350,000. The issuance of the
checks was recorded on January 3, 2022.
On December 28, 2021, the company purchased and received goods for P150,000, terms 2/10, n/30. The company
records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3, 2022
• Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January
2. 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022.
• Goods costing P120,000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The
company received the goods and the invoice on January 4, 2022.
The P1,000,000 ledger balance of accounts payable is net of P80,000 debit balance in one supplier's accounts representing deposit for goods to be delivered in February 2022.
What amount should the company report as total accounts payable on December 31, 2021?
A company sells contracts agreeing to service equipment for a three-year period. Information for the year ended
December 31, 2021 is as follows:
Cash receipts from service contracts sold
P1,920.000
Service contract revenue recognized
1,560.000
Unearned service contract revenue, January 1
11,080.000
In its December 31, 2021 statement of financial position , what amount should the company report as unearned service
contract revenue?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning