Problem 1.6: The records of your audit client, Anna Corp., which maintains records under cash-basis, revealed total payments made to supplier of merchandise amounted to P 1,250,000. Based on Audit investigation, they revealed that the additional information are the following: Accounts payable, January 1, 2021 Accounts payable, December 31, 2021 Notes payable-trade, January 1, 2021 Notes payable-trade, December 31, 2021 Merchandise inventories, January 1, 2021 Merchandise inventories, December 31, 2021 Purchase discounts Purchase returns before any payments were made, thus credit memos were received from the suppliers Purchase returns after payments were made, thus, cash was received from suppliers as refunds Requirements: Compute for the following under the accrual method: 1. Gross purchases for the year 2. Cost of goods sold for the year 75,000 108,000 57,000 42,000 189,000 243,000 45,000 55,000 25,000

Problem 1.6: The records of your audit client, Anna Corp., which maintains records under cash-basis, revealed total payments made to supplier of merchandise amounted to P 1,250,000. Based on Audit investigation, they revealed that the additional information are the following: Accounts payable, January 1, 2021 Accounts payable, December 31, 2021 Notes payable-trade, January 1, 2021 Notes payable-trade, December 31, 2021 Merchandise inventories, January 1, 2021 Merchandise inventories, December 31, 2021 Purchase discounts Purchase returns before any payments were made, thus credit memos were received from the suppliers Purchase returns after payments were made, thus, cash was received from suppliers as refunds Requirements: Compute for the following under the accrual method: 1. Gross purchases for the year 2. Cost of goods sold for the year 75,000 108,000 57,000 42,000 189,000 243,000 45,000 55,000 25,000

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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