Problem 10: You were tasked to audit the books of Plusplus Inc, a business personally owned by Ross Dagadag. Your task is to audit the inventory items which the company currently reports at P350,000 based on a physical count made before business hours on December 27, 2020 and the company's accounts payable which amounts to P275,000. The following invoices are for merchandise purchases entered in the voucher register of the company. Date of invoice Merchandise received Invoice no. December Register 2501 2502 2503 2504 2505 Amount F.O.B. P5,000 Destination 1,000 Shipping pt 4,000 Shipping pt 2,000 Destination 10,000 Destination Dec 25 Dec 27 Dec 27 Dec 30 Dec 22 January 5 Dec 29 January 4 January 8 Dec 30 January Register 2506 2507 2508 2509 2510 2511 Dec 30 Dec 30 Dec 26 11,000 Destination 8,000 Destination 9,000 Shipping pt 7,000 Shipping pt 6,000 Shipping pt 3,000 Destination Dec 30 Dec 26 January 2 Dec 25 January 7 January 5 Dec 29 January 5 Dec 30 The company returned damaged goods which they purchased for cash on December 30. The debit memo is. dated January 5. No perpetual inventory records are kept and the physical inventory is to be used as a basis for the financial statements. Determine the following: 26. The adjusted balance of ending inventory to be reported in the books of the company. 27. The adjusted balance of accounts payable to be reported in the balance sheet. 28. One compound adjustment to correct the above accounts.
Problem 10: You were tasked to audit the books of Plusplus Inc, a business personally owned by Ross Dagadag. Your task is to audit the inventory items which the company currently reports at P350,000 based on a physical count made before business hours on December 27, 2020 and the company's accounts payable which amounts to P275,000. The following invoices are for merchandise purchases entered in the voucher register of the company. Date of invoice Merchandise received Invoice no. December Register 2501 2502 2503 2504 2505 Amount F.O.B. P5,000 Destination 1,000 Shipping pt 4,000 Shipping pt 2,000 Destination 10,000 Destination Dec 25 Dec 27 Dec 27 Dec 30 Dec 22 January 5 Dec 29 January 4 January 8 Dec 30 January Register 2506 2507 2508 2509 2510 2511 Dec 30 Dec 30 Dec 26 11,000 Destination 8,000 Destination 9,000 Shipping pt 7,000 Shipping pt 6,000 Shipping pt 3,000 Destination Dec 30 Dec 26 January 2 Dec 25 January 7 January 5 Dec 29 January 5 Dec 30 The company returned damaged goods which they purchased for cash on December 30. The debit memo is. dated January 5. No perpetual inventory records are kept and the physical inventory is to be used as a basis for the financial statements. Determine the following: 26. The adjusted balance of ending inventory to be reported in the books of the company. 27. The adjusted balance of accounts payable to be reported in the balance sheet. 28. One compound adjustment to correct the above accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 10:
You were tasked to audit the books of Plusplus Inc, a business personally owned by Ross Dagadag. Your task is
to audit the inventory items which the company currently reports at P350,000 based on a physical count made
before business hours on December 27, 2020 and the company's accounts payable which amounts to P275,000.
The following invoices are for merchandise purchases entered in the voucher register of the company.
Invoice no.
December Register
Amount
F.O.B.
Date of invoice
Merchandise received
P 5,000 Destination
1,000 Shipping pt
4,000 Shipping pt
2,000 Destination
10,000 Destination
January 5
Dec 29
2501
Dec 25
2502
Dec 27
January 4
January 8
Dec 30
2503
Dec 27
2504
Dec 30
Dec 22
2505
January Register
2506
11,000 Destination
8,000 Destination
9,000 Shipping pt
7,000 Shipping pt
6,000 Shipping pt
3,000 Destination
Dec 30
Dec 30
2507
Dec 30
Dec 26
January 5
Dec 29
2508
Dec 26
January 2
Dec 25
January 7
2509
2510
January 5
Dec 30
2511
The company returned damaged goods which they purchased for cash on December 30. The debit memo is
dated January 5. No perpetual inventory records are kept and the physical inventory is to be used as a basis for
the financial statements. Determine the following:
26. The adjusted balance of ending inventory to be reported in the books of the company.
27. The adjusted balance of accounts payable to be reported in the balance sheet.
28. One compound adjustment to correct the above accounts.
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