The balance in Galaxy Co.'s accounts payable account at December 31, 2015 was $700,000 before any necessary year-end adjustments relating to the following:Goods were in transit to Galaxy from a vendor on December 31, 2015. The invoice cost was $40,000. The goods were shipped f.o.b. shipping point on December 29, 2015 and were received on January 4, 2016.Goods shipped f.o.b. destination on December 21, 2015 from a vendor to Galaxy were received on January 6, 2016. The invoice cost was $25,000.On December 27, 2015, Galaxy wrote and recorded checks to creditors totaling $30,000 that were mailed on January 10, 2016.In Galaxy's December 31, 2015 statement of financial position, the accounts payable should be $

Determine the amount of accounts payable during December 31, 2015.

Answered: The balance in Galaxy Co.'s accounts…

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...

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The balance in Galaxy Co.'s accounts payable account at December 31, 2015 was $700,000 before any necessary year-end adjustments relating to the following:

Goods were in transit to Galaxy from a vendor on December 31, 2015. The invoice cost was $40,000. The goods were shipped f.o.b. shipping point on December 29, 2015 and were received on January 4, 2016.
Goods shipped f.o.b. destination on December 21, 2015 from a vendor to Galaxy were received on January 6, 2016. The invoice cost was $25,000.
On December 27, 2015, Galaxy wrote and recorded checks to creditors totaling $30,000 that were mailed on January 10, 2016.

In Galaxy's December 31, 2015 statement of financial position, the accounts payable should be $

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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