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8. Ego Co. had the following account balances on December 31, 20x1 before adjustments: Inventory (per physical count on Dec. 31, 20x1) Accounts payable P800,000 960,000

8. Ego Co. had the following account balances on December 31, 20x1 before adjustments: Inventory (per physical count on Dec. 31, 20x1) Accounts payable P800,000 960,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional information: Goods in transit, with an invoice cost of P80,000 and purchased FOB shipping point, were recorded and included in the year-end physical count of inventory as "goods in transit." b. Goods in transit, with an invoice cost of P10,000 and purchased FOB destination, were recorded only on January 3, 20x2 when the shipment was received. C. Ego Co. returned damaged goods costing P20,000 on Dec. 29, 20x1. However, Ego Co. recorded the related credit memo only on January 4, 20x2. d. On December 31, 20x1, Ego Co. recorded a P60,000 check payable to a supplier. The check was dated January 7, 20x2. a. How much are the adjusted balances of (1) Inventory and (4 Accounts payable on December 31, 20x1? a. 780,000; 1,000,000 b. 790,000; 1,010,000 c. 800,000; 1,000,000 d. 810,000; 1,010,000
Transcribed Image Text:Additional information: Goods in transit, with an invoice cost of P80,000 and purchased FOB shipping point, were recorded and included in the year-end physical count of inventory as "goods in transit." b. Goods in transit, with an invoice cost of P10,000 and purchased FOB destination, were recorded only on January 3, 20x2 when the shipment was received. C. Ego Co. returned damaged goods costing P20,000 on Dec. 29, 20x1. However, Ego Co. recorded the related credit memo only on January 4, 20x2. d. On December 31, 20x1, Ego Co. recorded a P60,000 check payable to a supplier. The check was dated January 7, 20x2. a. How much are the adjusted balances of (1) Inventory and (4 Accounts payable on December 31, 20x1? a. 780,000; 1,000,000 b. 790,000; 1,010,000 c. 800,000; 1,000,000 d. 810,000; 1,010,000
8. Ego Co. had the following account balances on December 31, 20x1 before adjustments: P800,000 Inventory (per physical count on Dec. 31, 20x1) Accounts payable 960,000
Transcribed Image Text:8. Ego Co. had the following account balances on December 31, 20x1 before adjustments: P800,000 Inventory (per physical count on Dec. 31, 20x1) Accounts payable 960,000
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