Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade PayablesAccounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items:On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company.The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021.Additional information:A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021.B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were received on March 31, 2021. The invoice cost was P25,000. Based on the foregoing information, determine the adjusted balances of he following as of March 31, 2021.1. Adjusted accounts payable - trade

Calculation Amount (P) Accounts payable balance before adjustment 1,670,000 Add:…

Answered: Doll Company is selling sounds and…

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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Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021:

Trade Payables

Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items:

On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company.
The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021.
Additional information:

A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021.

B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were received on March 31, 2021. The invoice cost was P25,000.

Based on the foregoing information, determine the adjusted balances of he following as of March 31, 2021.

1. Adjusted accounts payable - trade

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