C. As the auditor of STUVWXYZ Partnership Ltd., you discovered the following transaction entries made in2022 to the Cost and Expense Account control ledger. The respective contra accounts used by theaccountant are indicated respectively. The company uses periodic method of recording inventories.Cost and Expense AccountPurchase of raw materialsP357,657Purchase discount on purchase of rawPayment of utility billsSalaries of administrative personnelSalaries of sales personnelCommission paid to personnelPayment of machine maintenanceDepreciation of buildingWages of factory workersLoss incurred on sale of inventories(value of impaired inventories P70,0000 20,000Sales discount granted to customers27,300materialsP2,75029,430Gain on sale of raw materials, on account5,00035,78522,57010,53085,200Purchase return for defective items22,47077,80015,320Notes:1. For debit transactions, the accountant used cash or accounts payable as the credit or contra account2. For credit transactions, the accountant used Accounts Receivable as debit or contra account3. The company uses periodic method of recording inventories.Required: Prepare adjusting entries to record correctly the transactions and close the Cost and Expense account. Chart of Accounts:Accounts ReceivableAccounts PayableInventoryScrap InventoryUtilities ExpenseSalaries & WagesCommission expenseGain on SaleSales DiscountMaintenance expenseDepreciation expenseLoss on Sale

These are the adjusting entries that are made in journal at the end of accounting period to adjust…

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.

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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