A company's accounts payable dated December 31. 2021. totaled P1.000.000 before any necessary year-end adjustments relating to the following transactions and information: • On December 27. 2021. the company wrote and issued checks to creditors totaling P350.000. The issuance of the checks was recorded on January 3, 2022. • On December 28. 2021, the company purchased and received goods for P150.000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3. 2022 • Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2. 2022. The invoice cost was P65.000. The purchase was recorded on January 2. 2022. • Goods costing P120.000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. • The P1.000,000 ledger balance of accounts payable is net of P80.000 debit balance in one supplier's accounts representing deposit for goods to be delivered in February 2022. What amount should the company report as total accounts payable on December 31, 2021?

A company's accounts payable dated December 31. 2021. totaled P1.000.000 before any necessary year-end adjustments relating to the following transactions and information: • On December 27. 2021. the company wrote and issued checks to creditors totaling P350.000. The issuance of the checks was recorded on January 3, 2022. • On December 28. 2021, the company purchased and received goods for P150.000, terms 2/10, n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3. 2022 • Goods shipped FOB Destination on December 20, 2021, from a vendor to the company were received on January 2. 2022. The invoice cost was P65.000. The purchase was recorded on January 2. 2022. • Goods costing P120.000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. • The P1.000,000 ledger balance of accounts payable is net of P80.000 debit balance in one supplier's accounts representing deposit for goods to be delivered in February 2022. What amount should the company report as total accounts payable on December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The company issued a ₱66,501 10% 120-day Notes Payable on September 30, 2020. The adjusting entry on year-end, December 31, 2020 will involve a debit to Interest Expense for how much?
Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary year-end adjustmentsrelating to the following transactions:➢ On December 28, 2020, Cool wrote and recorded checks to creditors totaling P2,000,000 causing an overdraft of P500,000 inCool’s bank account at December 31, 2020. The checks were mailed on January 11, 2021.➢ On December 29, 2020, Cool purchased and received goods for P750,000, terms 2/10, n/30. Cool records purchasesusing the net method. The invoice was recorded and paid on January 5, 2021.➢ Goods shipped FOB destination on December 21, 2020 from a vendor to Cool was received on January 3, 2021. The invoicecost was P325,000.At December 31, 2020, what amount should Cool report as total accounts payable?
Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. b) Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. d) Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August 2019. e) Received the electricity bill for AUD 24,200, which will be paid in early July. f) On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. g) Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 2019. Required: 1) Prepare the journal entries for each of these transactions 2) Prepare all adjusting entries required on 30 June 2019
Yukgaejang Company recorded uncollectible accounts expense of P20,000 during 2021. The allowance for uncollectible accounts had a balance of P17,500 on December 31, 2019. During the year 2020, Yukgaejang wrote off P30,500 of uncollectible receivables and recovered P8,050 of uncollectible accounts written off in previous years. How much will be the allowance for uncollectible accounts on December 31, 2021? a. P45,550 b. P15,050 c. P19,050 d. P7,000
The balance in Milk Tea Company’s accounts payable at December 31, 2021 was P2,500,000 before considering the following information:· On December 27, 2021, Milk Tea wrote checks to creditors totaling P500,000. The checks were released and recorded on January 3, 2022.· On December 28, 2021, Milk Tea received goods from suppliers amounting to P350,000, terms 3/10, 2/15, n/30, FOB Destination. The related invoice was received and recorded on January 2, 2022. The company uses the net method to account for cash discounts.· Milk Tea’s supplier erroneously billed a purchase made on cash. The invoice cost was P500,000, terms 2/10, n/30. The related invoice was received and recorded on December 22, 2021.· A debit balance in a supplier’s account amounting to P50,000 was charged against the accounts payable ledger balance. The amount represents advance payments for goods to be delivered in January 2022.· A credit balance in a customer’s account amounting to P37,500…
PART - E Toner Limited (“Toner") borrows $180,000 on 1 July 2020 from Lighthouse Bank and signs a $180,000, 5%, 1-year promissory note. Assuming yearly accounting periods and a financial year end balance date of 31 December. Required: (i) Prepare the general journal entries to record the issuance of the promissory note. (ii) Prepare the general journal entries to record the adjusting journal entries as at 31 December 2020. (iii) Prepare the general journal entries to record the repayment on 1 July of 2021.
ABC Company showed the following balances on December 31, 2021: Accounts receivable P4,000,000 Allowance for doubtful accounts- credit 120,000 The following transactions transpired for ABC Company during the year 2021: o On May 1, received a P600,000, six-month, 12% interest bearing note from CD, a customer, in settlement of an account. o On June 30, factored P800,000 of its accounts receivable to a finance company. The finance company charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored. On August 1, ABC Company discounted the CD note at the bank at 15%. On November 1, CD defaulted on the P600,000 note. ABC Company paid the bank the total amount due plus a P24,000 protest fee and other bank charges. On December 31, ABC Company assigned P1,200,000 of its accounts receivable to a bank under non-notification basis. The bank advanced 80% less service fee of 5% of the accounts assigned. ABC Company signed a promissory note for the loan. On December…
What is the answer in D?
4. You are preparing the monthly bank reconciliation of Core Company for the month ending December 31, 2020. You discovered an erroneous credit to Core's account, representing proceeds of loan granted to another company amounting to P300,000. Prepare the adjusting journal entry.
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.