As the auditor of STUVWXYZ Partnership Ltd., you discovered the following transaction entries made in 2022 to the Cost and Expense Account control ledger. The respective contra accounts used by the accountant are indicated respectively. The company uses periodic method of recording inventories.
As the auditor of STUVWXYZ Partnership Ltd., you discovered the following transaction entries made in 2022 to the Cost and Expense Account control ledger. The respective contra accounts used by the accountant are indicated respectively. The company uses periodic method of recording inventories.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%

Transcribed Image Text:C. As the auditor of STUVWXYZ Partnership Ltd., you discovered the following transaction entries made in
2022 to the Cost and Expense Account control ledger. The respective contra accounts used by the
accountant are indicated respectively. The company uses periodic method of recording inventories.
Cost and Expense Account
Purchase of raw materials
P357,657
Purchase discount on purchase of raw
Payment of utility bills
Salaries of administrative personnel
Salaries of sales personnel
Commission paid to personnel
Payment of machine maintenance
Depreciation of building
Wages of factory workers
Loss incurred on sale of inventories
(value of impaired inventories P70,0000 20,000
Sales discount granted to customers
27,300
materials
P2,750
29,430
Gain on sale of raw materials, on account
5,000
35,785
22,570
10,530
85,200
Purchase return for defective items
22,470
77,800
15,320
Notes:
1. For debit transactions, the accountant used cash or accounts payable as the credit or contra account
2. For credit transactions, the accountant used Accounts Receivable as debit or contra account
3. The company uses periodic method of recording inventories.
Required: Prepare adjusting entries to record correctly the transactions and close the Cost and Expense account.

Transcribed Image Text:Chart of Accounts:
Accounts Receivable
Accounts Payable
Inventory
Scrap Inventory
Utilities Expense
Salaries & Wages
Commission expense
Gain on Sale
Sales Discount
Maintenance expense
Depreciation expense
Loss on Sale
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 5 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education