Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were received on March 31, 2021. The invoice cost was P25,000. Payroll Wages and payroll expense amounted to P890,000 for the last payroll period ending on March 31, 2021. Additional information are as follows: Income tax withheld - P100,000 SSS, PhilHealth, and HDMF contributions, Employee's share - P10,000 SSS, PhilHealth, and HDMF Contibutions, Employer's share - P15,000 Notes Payable Doll Company has signed several long-term notes with financial institutions. The maturities of these notes are given below. The total unpaid interest for all of these notes amounts to P408,000 on March 31, 2021. Due Date Amount April 30, 2021 P720,000 July 31, 2021 1,080,000 September 1, 2021 540,000 February 1, 2022* 540,000 April 1, 2022 to March 31, 2023 3,240,000 *With respect to the note due on February 1, 2022, Doll Company has a present unconditional right to defer the payment of the note for another one (1) year from the original maturity date. Based on the foregoing information, determine the adjusted balances of the following as of March 31, 2021. - Adjusted accounts payable - trade - Trade and other payables
Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021:
Trade Payables
Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items:
- On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company.
- The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021.
- Additional information:
A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021.
B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were received on March 31, 2021. The invoice cost was P25,000.
Payroll
Wages and payroll expense amounted to P890,000 for the last payroll period ending on March 31, 2021. Additional information are as follows:
- Income tax withheld - P100,000
- SSS, PhilHealth, and HDMF contributions, Employee's share - P10,000
- SSS, PhilHealth, and HDMF Contibutions, Employer's share - P15,000
Notes Payable
Doll Company has signed several long-term notes with financial institutions. The maturities of these notes are given below. The total unpaid interest for all of these notes amounts to P408,000 on March 31, 2021.
Due Date | Amount |
April 30, 2021 | P720,000 |
July 31, 2021 | 1,080,000 |
September 1, 2021 | 540,000 |
February 1, 2022* | 540,000 |
April 1, 2022 to March 31, 2023 | 3,240,000 |
*With respect to the note due on February 1, 2022, Doll Company has a present unconditional right to defer the payment of the note for another one (1) year from the original maturity date.
Based on the foregoing information, determine the adjusted balances of the following as of March 31, 2021.
- Adjusted accounts payable - trade
- Trade and other payables
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