10. SSD, Inc. is preparing its financial statements for the year ended December 31, 2023. Accounts payable amounted to P560,000 before any necessary year-end adjustment related to the following: On December 31, 2023, SSD has a P80,000 debit balance in its accounts payable to Ross, a supplier, resulting from a P100,000 payment for goods to be manufactured to SSD’s specifications. SSD has an existing obligation to Ross which amounted to P20,000. Such an amount represents the value of goods just acquired by SSD from Ross. Previous experiences of SSD reveal that it pays all its trade obligations with an available discount on the last day of the discount period. A check with control number 189 in the amount of P100,000 was written to a vendor and recorded on December 25, 2023. The checks were mailed following the day it was written. However, when the bank statement arrived on January 2, 2024, it was found out by SSD that such a check has not yet been presented for encashment. SSD performs monthly bank reconciliation. A check amounted to P87,000 was written and recorded on December 29, 2023. The check was dated January 15, 2024. Another check was found inside the drawer of the disbursing officer at the end of December 2023. Such a check shows an amount of P73,000. It was not recorded by SSD yet. What amount should SSD report as accounts payable in its December 31, 2023 balance sheet?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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10. SSD, Inc. is preparing its financial statements for the year ended December 31, 2023. Accounts payable amounted to P560,000 before any necessary year-end adjustment related to the following:

On December 31, 2023, SSD has a P80,000 debit balance in its accounts payable to Ross, a supplier, resulting from a P100,000 payment for goods to be manufactured to SSD’s specifications. SSD has an existing obligation to Ross which amounted to P20,000. Such an amount represents the value of goods just acquired by SSD from Ross. Previous experiences of SSD reveal that it pays all its trade obligations with an available discount on the last day of the discount period.
A check with control number 189 in the amount of P100,000 was written to a vendor and recorded on December 25, 2023. The checks were mailed following the day it was written. However, when the bank statement arrived on January 2, 2024, it was found out by SSD that such a check has not yet been presented for encashment. SSD performs monthly bank reconciliation.
A check amounted to P87,000 was written and recorded on December 29, 2023. The check was dated January 15, 2024.
Another check was found inside the drawer of the disbursing officer at the end of December 2023. Such a check shows an amount of P73,000. It was not recorded by SSD yet.

What amount should SSD report as accounts payable in its December 31, 2023 balance sheet?

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