Homework Help is Here – Start Your Trial Now!
Business
Accounting
balance of following:

balance of following:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Solve and explain why it is the answer.
7. Anger Co.'s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible adjustment for the following: a) Goods in transit purchased on credit for P23,000 under an FOB destination term were recorded and included in the inventory count on December 31, 20x1 as “goods in transit." b) Anger Co. checks, drawn for P32,000, were found in the safe box during the Dec. 31, 20x1 securities count. c) Goods purchased under an 'FOB destination, freight collect' term were received and recorded at the invoice cost of P60,000 on Dec. 29, 20x1. The cash payment for the related freight of P5,000 was debited to the 'Freight-out account. d) Goods worth P90,000 received on consignment from Dishonor Co. were recorded as an increase in accounts payable. The goods remain unsold as of Dec. 31, 20x1. e) The balance of accounts payable includes P64,000 cost of goods purchased under an FOB shipping point term that were lost in transit. Anger Co. recorded a corresponding claim against the carrier. How much is the adjusted balance of accounts payable? b. 2,214,000 a. 2,150,000 c. 2,240,000 d. 2,304,000
Transcribed Image Text:7. Anger Co.'s accounts payable on December 31, 20x1 had a balance of P2,300,000 before any possible adjustment for the following: a) Goods in transit purchased on credit for P23,000 under an FOB destination term were recorded and included in the inventory count on December 31, 20x1 as “goods in transit." b) Anger Co. checks, drawn for P32,000, were found in the safe box during the Dec. 31, 20x1 securities count. c) Goods purchased under an 'FOB destination, freight collect' term were received and recorded at the invoice cost of P60,000 on Dec. 29, 20x1. The cash payment for the related freight of P5,000 was debited to the 'Freight-out account. d) Goods worth P90,000 received on consignment from Dishonor Co. were recorded as an increase in accounts payable. The goods remain unsold as of Dec. 31, 20x1. e) The balance of accounts payable includes P64,000 cost of goods purchased under an FOB shipping point term that were lost in transit. Anger Co. recorded a corresponding claim against the carrier. How much is the adjusted balance of accounts payable? b. 2,214,000 a. 2,150,000 c. 2,240,000 d. 2,304,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS