The balance of Ward Company’s Accounts Payable at December 31, 2019 was P1,300,000 before any year-end adjustments of the following transactions during 2019: Goods were in transit from a vendor to Ward on December 31, 2019. The invoice cost was P45,000 and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019 from a vendor to Ward were lost in transit. The invoice cost was P34,000. On January 4, 2020, Ward filed a P34,000 claim against the common carrier. On December 27, 2019, Ward wrote and recorded checks totaling P60,000 in payment of an accounts payable which were mailed on January 10, 2020. a) Prepare adjusting journal entries on December 31, 2019 showing solutions in good accounting form. b) What amount should Ward report as accounts payable on its December 31, 2019 Statement of Financial Position?
The balance of Ward Company’s Accounts Payable at December 31, 2019 was P1,300,000 before any year-end
adjustments of the following transactions during 2019:
Goods were in transit from a vendor to Ward on December 31, 2019. The invoice cost was P45,000 and the
goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020.
Goods shipped FOB shipping point on December 20, 2019 from a vendor to Ward were lost in transit. The invoice
cost was P34,000. On January 4, 2020, Ward filed a P34,000 claim against the common carrier.
On December 27, 2019, Ward wrote and recorded checks totaling P60,000 in payment of an accounts payable
which were mailed on January 10, 2020.
a) Prepare
b) What amount should Ward report as accounts payable on its December 31, 2019 Statement of Financial
Position?
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