Directions: Show complete solutions. Take a picture of your solutions and paste in word. Submit the word file version to my email no later than 10:30am today. Thanks. Problem 1: Quarry Company, a manufacturer of small tools, provided the following information for the year ended December 31, 2020. Inventory at December 31, based on physical count – P1,750,000 Accounts payable at December 31 – P1,200,000 Net sales – P8,500,000 Additional information: Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. Goods in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P50,000 and the goods were shipped FOB shipping point on December 29, 2020. Work in Process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. Tools shipped to a customer FOB destination on December 26, 2020 were in transit on December 31, 2020, and had a cost of P25,000. Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued a sales invoice for P42,000. Goods with an invoice cost of P30,000, received from a vendor at 5:00 Pm. On December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count but the invoice was included in accounts payable on December 31, 2020. Goods received from a vendor on December 26, 2020 were included in the Physical Count. However, the related P60,000 vendor invoice was not included in accounts payable on December 31, 2020 because the accounts payable copy of the receiving report was lost. On January 10, 2021, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory on December 31, 2020. The freight charge was not included in either the inventory or in accounts payable on December 31, 2020. Required: Compute the correct balances of: Inventory Accounts payable Net Sales

Directions: Show complete solutions. Take a picture of your solutions and paste in word. Submit the word file version to my email no later than 10:30am today. Thanks. Problem 1: Quarry Company, a manufacturer of small tools, provided the following information for the year ended December 31, 2020. Inventory at December 31, based on physical count – P1,750,000 Accounts payable at December 31 – P1,200,000 Net sales – P8,500,000 Additional information: Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier. Goods in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P50,000 and the goods were shipped FOB shipping point on December 29, 2020. Work in Process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date. Tools shipped to a customer FOB destination on December 26, 2020 were in transit on December 31, 2020, and had a cost of P25,000. Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued a sales invoice for P42,000. Goods with an invoice cost of P30,000, received from a vendor at 5:00 Pm. On December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count but the invoice was included in accounts payable on December 31, 2020. Goods received from a vendor on December 26, 2020 were included in the Physical Count. However, the related P60,000 vendor invoice was not included in accounts payable on December 31, 2020 because the accounts payable copy of the receiving report was lost. On January 10, 2021, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory on December 31, 2020. The freight charge was not included in either the inventory or in accounts payable on December 31, 2020. Required: Compute the correct balances of: Inventory Accounts payable Net Sales

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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Directions: Show complete solutions. Take a picture of your solutions and paste in word. Submit the word file version to my email no later than 10:30am today. Thanks.

Problem 1:

Quarry Company, a manufacturer of small tools, provided the following information for the year ended December 31, 2020.

Inventory at December 31, based on physical count – P1,750,000

Accounts payable at December 31 – P1,200,000

Net sales – P8,500,000

Additional information:

Included in the physical count were tools billed to a customer FOB shipping point on December 31, 2020. These tools had a cost of P28,000 and were billed at P35,000. The shipment was in loading dock waiting to be picked up by the common carrier.
Goods in transit from a vendor to Quarry Company on December 31, 2020. The invoice cost was P50,000 and the goods were shipped FOB shipping point on December 29, 2020.
Work in Process inventory costing P20,000 was sent to an outside processor for plating on December 30, 2020.
Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020 were not included in the physical count. On January 5, 2021, the tools costing P26,000 were inspected and returned to inventory. Credit memos totaling P40,000 were issued to the customers on the same date.
Tools shipped to a customer FOB destination on December 26, 2020 were in transit on December 31, 2020, and had a cost of P25,000. Upon notification of receipt by the customer on January 5, 2021, Quarry Company issued a sales invoice for P42,000.
Goods with an invoice cost of P30,000, received from a vendor at 5:00 Pm. On December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count but the invoice was included in accounts payable on December 31, 2020.
Goods received from a vendor on December 26, 2020 were included in the Physical Count. However, the related P60,000 vendor invoice was not included in accounts payable on December 31, 2020 because the accounts payable copy of the receiving report was lost.
On January 10, 2021, a monthly freight bill in the amount of P20,000 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory on December 31, 2020. The freight charge was not included in either the inventory or in accounts payable on December 31, 2020.

Required: Compute the correct balances of:

Inventory
Accounts payable
Net Sales

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