Purchase of merchandise on account on December 27, 2019 amounting to P50,000 was  not recorded until it was paid on January 2020. The merchandise was properly included  in the ending inventory in 2019. Questions: What is the adjusting entry at the end of 2019? What is the adjusting entry for 2020 if not adjusted during 2019? What are the accounts affected?

Q: Sayaovang Company discovers in 2020 that its ending inventory at December 31, 2019, was $7,000…

A: Introduction: Income statement: All revenues and expenses are recorded in income statement. It tells…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: The statement of P/L shows the financial performance of the business by depicting the ability of the…

Q: The following balances were reported by ABC Co. at December 31, 2019 and 2020: 12/31/20 P2,600,000…

A: Cost of goods sold:- Cost of goods sold is defined as the cost which includes all direct costs that…

Q: Adjusting Entry for Merchandise Inventory Shrinkage Paragon Tire Co.'s perpetual inventory records…

A: Perpetual inventory: Under perpetual inventory system each transaction for purchase of inventory,…

Q: During the taking of its physical inventory on December 31, 2019, Waterjet Bath Company incorrectly…

A: Inventory error:Inventory errors are sometimes caused by making mistake, in physical count, in…

Q: Castle Furnishings Company’s perpetual inventory records indicate that $675,400 of merchandise…

A: Shrinkage: The cost of difference between the recorded inventory value and physical count of…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

Q: Inventory at December 31, 2021 was understated by P 15,000. What would be the adjusting entry if the…

A: As per relevant accounting standards, whenever a error of previous year identified in the current…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Merchandise is an inventory assets that a retailer , distributor or wholesaler purchases…

Q: The balance in Vloom Company's inventory account on December 31, 2019 was P1,225,000 before the…

A: Under the terms of the FOB shipping point, the buyer becomes the owner of the goods as soon the…

Q: During the year ended December 31, 2021, Samar Company revealed the following events: a) a counting…

A: Prior period error are omission or misstatement in the financial statement for prior periods.

Q: The following balances were reported by ABC Co. at December 31, 2019 and 2020: 12/31/20 12/31/19…

A: The cost of goods sold refers to the cost of purchase or manufacturing of the goods which have been…

Q: In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method…

A: Change in the method of inventory valuation: Changing the method of inventory valuation is a change…

Q: During the course of your examination of the financial statements of H Co., a new client, for the…

A: The question is based on the concept of Financial Accounting.

Q: tory, January 1, 2022, P 15,000; Credit - Cost of Sales, P 15,000. b. Debit - Retained Earnings, P…

A: The inventory balance of December 31 , 2021 is carried forward to January 1, 2022. If the ending…

Q: Naylor, Inc. uses a perpetual inventory system. It records its inventory at lower-of-cost-or-net…

A: Lower of Cost or Net Realizable Value (NRV) Method: This is a method of recording ending inventory…

Q: Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial…

A: The question is based on the concept of Final Accounts. As per the Bartleby guidelines we are…

Q: On September 14, 2022, Blossom Company sells merchandise valued at $20000 on account to Pacifica…

A: Blossom’s entry on that date is: Account titles and explanation Debit Credit Cash $19400…

Q: n June 15, 2022, Lucas Corporation accepted delivery of merchandise which it  purchased on account.…

A: Purchase of inventory on account results in: Increase is Assets by the purchase price as inventory…

Q: During the taking of its physical inventory on August 31, 2019, Kate Interiors Company incorrectly…

A: Inventory error:Inventory errors are sometimes caused by making mistake, in physical count, in…

Q: While examining the December 31, 2019 financial statements of Google Company, the following errors…

A: The cost of goods sold is calculated as COGS = beginning inventory + Purchases - Ending inventory

Q: Company reported an Accumulated Profits and Losses balance of P300,000 at December 31, 2019. In June…

A: Amount of merchandise not included in Inventory = P100,000 That means beginning Accumulated Profits…

Q: Inventory at December 31, 2021 was overstated by P 20,000. What would be the adjusting entry if the…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit…

A: Net Fair value adjustment = $800 ( $1600 + $1000 - $1800)   The adjusting entries to reflect the…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A:

Q: Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15,…

A: Accounts receivable :— Account receivable are shown in the Asset side of the balance sheet. Account…

Q: Make accounting entries for following perpetual inventory transaction Nov8,2019 received a debit…

A: In the given case, the error is overstatement of invoice by $ 65 so in order to correct the error,…

Q: An entry to record Purchases and related Accounts Payable of \130,000 for merchandise purchased…

A: Solution: Non recording purchases results in Understatement of purchases and understatement of cost…

Q: In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to…

A: Increase/(Decrease) in inventory value = Inventory cost at per FIFO - Current inventory value = $64…

Q: 00,000. The perpetual inventory records showed an ending inventory of P840, 000 for 2020. A physical…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: Items to Be Included in Inventory As the auditor of Hayes Company forthe year ended December 31,…

A: FOB destination: When the seller bears the freight charges for the delivery of merchandise from the…

Q: Pork Company's accounts payable at December 31, 2020 totaled P20,000,000 before any necessary…

A: Accounts Payable: It is a  commitment by an organization  to pay its creditors (as money related…

Q: At December 31, 2020, Sandhill’s Mercantile has Cost of Goods Sold of $50800 before adjusting…

A: Adjusted cost of goods sold = Reported cost of goods sold + decreased value of inventory

Q: ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost…

A: Solution: inventory to be reported at December 31, 2019 = physical inventory + goods in transit…

Q: An entry to record Purchases and related Accounts Payableof $13,000 for merchandise purchased on…

A: The given error is not recording inventory purchases in the period of purchase but in the subsequent…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: Accrued interest can be referred to as the amount of interest revenue which is earned by an entity…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…

Q: Hero Company reported inventory on December 31, 2019 at 6,000,000 based on physical count of goods…

A: FOB shipping point implies that ownership of goods are transferred from seller to the buyer when…

Q: An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on…

A: The given error is not recording inventory purchase in the period of purchase but in the subsequent…

Q: Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should…

A: Inventory shrinkage: It represents the loss of inventory. In other words, it refers to the…

Q: Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory…

A: Gross profit and ending inventory have a direct relationship i.e. increase (Overstated) in ending…

Q: Mulligan Corporation purchases inventory on account with terms FOB shipping point. The goods are…

A: Free On Board (FOB) terms defines and reveals whether the seller or buyer is responsible for or who…

Q: Bought office supplies of P21,400 in cash on May 29, 2019. At the end of the fiscal reporting period…

A: 1. Entry to be made on May 29, 2019: Dr. Supplies Expense 21,400 Cr. Cash 21,400 2. Supplies in hand…

Q: Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetual…

A: Statement of changes in equity refers to the statement that shows the changes in the owner's capital…

Q: Problem: On December 31, 2019, the ending inventory was overstated by P6,000. What is the adjusting…

A: 1)

Q: Lumen INC. is preparing its 2020 year-end financial statements. Prior to any adjustments, inventory…

A: Under FOB shipping point, title of the goods transferred to the buyer as soon as the shipment leaves…

Q: Bramble Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $216,170,800 at…

A: Perpetual inventory system, also regarded as continuous inventory that states the inventory system,…

Q: Data relating to the balances of various accounts affected by adjusting or closing entries appear…

A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…